Lumen Technologies Inc (LUMN)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		30.71	19.99	20.47	19.92	18.35
Number of days of payables	days	11.89	18.26	17.83	18.32	19.89

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 30.71
= 11.89

Lumen Technologies Inc's number of days of payables has shown variability over the past five years. The metric indicates the average number of days it takes for the company to pay its suppliers.

In 2023, the number of days of payables increased to 57.94 days from 44.07 days in 2022, indicating a longer period for paying off its suppliers compared to the previous year. This could suggest a change in the company's payment policies or the presence of challenges in managing its accounts payable effectively.

Comparing 2023 to 2021 and 2020, we observe a notable upward trend in the number of days of payables. The metric increased from 32.60 days in 2021 to 46.33 days in 2020, before reaching 57.94 days in 2023. This trend may indicate a potential shift towards a slower payment cycle, which could have implications for the company's cash flow management and relationships with suppliers.

In contrast, the number of days of payables decreased from 62.45 days in 2019 to 44.07 days in 2022, before reversing course in 2023. This fluctuation in payment periods may suggest varying strategies or external factors influencing the company's payables management.

Overall, the increasing trend in Lumen Technologies Inc's number of days of payables in recent years raises considerations about its working capital management and vendor relationships. Further analysis and monitoring of this metric can provide insights into the company's financial health and operational efficiency.