Johnson Controls International PLC (JCI)
Number of days of payables
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.42 | 7.34 | 5.63 | 5.78 | 7.15 | |
| Number of days of payables | days | 56.87 | 49.70 | 64.80 | 63.18 | 51.02 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.42
= 56.87
The trend in Johnson Controls International PLC's number of days of payables over the past five years indicates fluctuations. The number of days of payables has ranged from 49.70 days in 2023 to 64.80 days in 2022, with a current figure of 56.87 days as of September 30, 2024. This metric measures the average number of days the company takes to pay its suppliers, reflecting its efficiency in managing its accounts payable.
A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially indicating a strategy to preserve cash or negotiate favorable payment terms. Conversely, a lower number of days of payables may signal a more aggressive approach to managing payables but could also indicate strong supplier relationships or cash flow constraints.
Overall, the analysis of Johnson Controls International PLC's number of days of payables indicates a varying payment behavior over the years, which may be influenced by strategic decisions, market conditions, or operational efficiency. It is essential to monitor this metric alongside other financial ratios to gain a comprehensive understanding of the company's working capital management and liquidity position.
Peer comparison
Sep 30, 2024
See also:
Johnson Controls International PLC Average Payables Payment Period