Liquidity Services Inc (LQDT)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.72 | 4.64 | 4.36 | 7.40 | 11.75 | |
| Number of days of payables | days | 63.82 | 78.67 | 83.77 | 49.29 | 31.07 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.72
= 63.82
To analyze Liquidity Services Inc's number of days of payables, we observe a trend of increasing payables turnover period over the past five years. In 2023, the number of days of payables was 100.31 days, compared to 128.33 days in 2022 and 137.66 days in 2021. This indicates a prolonged period within which the company pays its creditors.
The increase in the payables turnover period may imply a less favorable liquidity position for the company, as it takes a longer time to settle its payables. It could also potentially signal a strained relationship with suppliers, leading to extended payment terms.
It is important for stakeholders to monitor this trend, as a significant increase in the number of days of payables could impact cash flow and relationships with suppliers, ultimately affecting the company's financial health and operational efficiency.
Peer comparison
Sep 30, 2023