Masimo Corporation (MASI)

Number of days of payables

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Payables turnover		8.50	6.08	7.82	8.16	6.83	6.26	6.80	7.87	5.67	4.55	3.56	4.90	5.70	7.02	6.37	6.66	6.25	4.17	3.87	6.37
Number of days of payables	days	42.93	60.04	46.70	44.75	53.42	58.27	53.64	46.37	64.37	80.24	102.54	74.54	64.04	51.98	57.34	54.80	58.36	87.58	94.28	57.33

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.50
= 42.93

The number of days of payables for Masimo Corporation has shown fluctuation over the past few years. From March 31, 2020, to June 30, 2020, there was a significant increase from 57.33 days to 94.28 days, indicating that the company took longer to pay its suppliers. This high number decreased to 58.36 days by December 31, 2020.

Subsequently, from March 31, 2021, to June 30, 2021, the number of days of payables increased slightly to 57.34 days but then decreased to 51.98 days by September 30, 2021. This decrease suggests that the company improved its efficiency in paying suppliers.

The trend reversed again as of December 31, 2021, when the number of days of payables increased to 64.04 days, indicating that the company took longer to settle its payables. This trend continued into the following quarters, with the number of days of payables reaching 102.54 days as of June 30, 2022.

Masimo Corporation showed some improvement in managing its payables by reducing the number of days to 44.75 days by March 31, 2024, and maintaining a relatively stable level around this figure in the following quarters. However, effective management of payables is critical for maintaining cash flow and supplier relationships in the long term.