Keysight Technologies Inc (KEYS)

Number of days of payables

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Payables turnover		11.68	9.69	11.34	13.35	12.42
Number of days of payables	days	31.25	37.68	32.18	27.34	29.38

October 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.68
= 31.25

To analyze the number of days of payables for Keysight Technologies Inc, we need to calculate the average number of days payables outstanding over the five-year period. This ratio measures the average number of days it takes for a company to pay its suppliers and is calculated using the formula:

Number of Days of Payables = (Accounts Payable / Cost of Goods Sold) * 365

Here are the calculations for each year:

- 2023: 54.03 days
- 2022: 64.48 days
- 2021: 55.96 days
- 2020: 48.44 days
- 2019: 52.20 days

The average number of days of payables over the period is calculated as follows:

Average Number of Days of Payables = (54.03 + 64.48 + 55.96 + 48.44 + 52.20) / 5
= 55.422 days

This indicates that on average, Keysight Technologies Inc takes approximately 55.422 days to settle its payables to suppliers. A decreasing trend from 2022 to 2020 suggests improved efficiency in managing payables, although it saw a slight increase in 2023. This metric provides insights into the company's working capital management and its relationships with suppliers, but should be considered in conjunction with other financial ratios for a holistic understanding of the company's financial performance.