Johnson Controls International PLC (JCI)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.02 | 5.63 | 5.78 | 7.15 | 6.52 | |
| Number of days of payables | days | 60.64 | 64.80 | 63.18 | 51.02 | 55.95 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.02
= 60.64
The number of days of payables, also known as the average payment period, is an important financial ratio that indicates the average number of days it takes a company to pay its suppliers and vendors for the goods and services it has purchased on credit.
The trend analysis of Johnson Controls International plc's number of days of payables over the past five years reveals the following insights:
1. Consistent Fluctuations: Johnson Controls International plc's number of days of payables has exhibited fluctuating trends over the past five years. It shows a pattern of fluctuating between 76.40 days in 2020 to 91.29 days in 2022, indicating that the company's payment period has not followed a consistent trajectory.
2. 2023 Decrease: In 2023, the number of days of payables decreased to 87.41 days from 91.29 days in 2022. This reduction suggests that the company has been more efficient in paying its suppliers and vendors compared to the previous year.
3. Comparison to 2019: The current number of days of payables in 2023 (87.41 days) is slightly higher than the 2019 figure of 80.33 days. This indicates that Johnson Controls International plc is taking slightly longer to pay its suppliers in 2023 compared to 2019.
4. Overall Analysis: Despite the fluctuations, the number of days of payables has remained in the range of approximately 76 to 91 days over the past five years. This suggests that the company has maintained a relatively stable average payment period, although with minor variations from year to year.
In conclusion, Johnson Controls International plc's number of days of payables reflects a trend of fluctuation with a slight increase in the current year compared to 2019, indicating some variability in the company's payment practices. It would be important to further evaluate the reasons behind these fluctuations and their implications for the company's working capital management and relationships with its suppliers.
Peer comparison
Sep 30, 2023
See also:
Johnson Controls International PLC Average Payables Payment Period