International Business Machines (IBM)
Number of days of payables
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 6.67 | 8.23 | 7.36 | 7.44 | 6.87 | 7.35 | 7.40 | 7.69 | 6.54 | 3.48 | 4.22 | 5.03 | 6.03 | 6.12 | 5.29 | 6.16 | 5.35 | 10.16 | 8.75 | 7.35 | |
| Number of days of payables | days | 54.72 | 44.35 | 49.62 | 49.08 | 53.11 | 49.65 | 49.30 | 47.44 | 55.81 | 104.89 | 86.57 | 72.56 | 60.54 | 59.61 | 69.00 | 59.27 | 68.26 | 35.94 | 41.73 | 49.67 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.67
= 54.72
The number of days of payables for International Business Machines Corp. has shown a fluctuating trend over the past eight quarters. In Q4 2023, the company took approximately 54.72 days to pay its suppliers, which represents an increase from the previous quarter. This increase in the number of days of payables suggests that IBM is taking slightly longer to settle its outstanding obligations to suppliers.
Comparing this to Q3 2023, where the number of days of payables was 44.35 days, the current increase indicates a potential shift in IBM's payment terms or cash flow management strategies. It is important to note that the Q4 2023 figure is lower compared to the numbers reported in Q3 and Q2 of 2022, which were notably higher at 77.46 days and 65.35 days, respectively.
The gradual decline in the number of days of payables seen in recent quarters might imply that IBM's management is effectively optimizing its cash conversion cycle by managing payables more efficiently. However, the current increase warrants further scrutiny to assess whether it is a one-time occurrence or a sustained change in the company's payables management strategy. An analysis of the underlying factors influencing this metric in conjunction with other financial indicators would provide deeper insights into IBM's financial health and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Average Payables Payment Period (Quarterly Data)