Innospec Inc (IOSP)

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		10.76	12.08	11.45	10.03	10.55	9.57	8.52	8.90	8.91	9.03	9.26	9.83	11.63	14.72	17.46	12.28	11.08	12.79	11.57	10.93
Number of days of payables	days	33.93	30.21	31.89	36.38	34.59	38.16	42.82	41.02	40.99	40.43	39.41	37.14	31.40	24.80	20.91	29.71	32.94	28.54	31.54	33.38

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.76
= 33.93

The number of days of payables for Innospec Inc has shown some fluctuations over the past eight quarters. The average number of days of payables during this period was approximately 45 days, indicating that the company takes around 45 days on average to pay its trade payables.

In Q3 2022, the number of days of payables reached its highest point at 53.93 days, suggesting a delay in settling its payables during that period. Subsequently, there was a gradual decrease in the number of days of payables in the following quarters, with Q3 2023 showing the lowest figure at 38.70 days.

Overall, the downward trend in the number of days of payables indicates a potential improvement in the company's payment efficiency and cash management over the quarters analyzed. However, it is important to further evaluate the reasons behind these fluctuations to ensure they are in line with the company's overall financial strategy and operations.