Masimo Corporation (MASI)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		8.49	6.83	5.90	5.70	6.26
Number of days of payables	days	43.01	53.41	61.82	64.06	58.35

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.49
= 43.01

Masimo Corporation's number of days of payables has demonstrated some fluctuations over the past five years. The trend shows an increase from 58.35 days as of December 31, 2020, to 64.06 days by December 31, 2021, followed by a slight decrease to 61.82 days by December 31, 2022. However, there was a more noticeable decrease to 53.41 days by December 31, 2023, and a further drop to 43.01 days by December 31, 2024.

The decrease in the number of days of payables from 2022 to 2024 may indicate that Masimo Corporation has been able to manage its payables more efficiently, possibly negotiating more favorable credit terms with its suppliers or improving its cash flow management. A lower number of days of payables suggests that the company is paying its suppliers more quickly, which could be beneficial for maintaining good relationships with suppliers.

However, it is essential to note that a significant decrease in the number of days of payables should be analyzed carefully to ensure it is not negatively impacting the company's cash flow or financial stability. Overall, the trend in Masimo Corporation's number of days of payables reflects potential improvements in its working capital management strategies over the years.