MDU Resources Group Inc (MDU)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		6.30	9.53	8.57	9.52	9.71
Number of days of payables	days	57.97	38.31	42.59	38.33	37.58

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.30
= 57.97

The number of days of payables for MDU Resources Group Inc has shown a decreasing trend over the last five years. In 2019, it stood at 289.78 days, then increased to 340.30 days in 2020, before gradually decreasing to 313.72 days in 2021, further reducing to 282.23 days in 2022, and ultimately reaching 203.86 days in 2023.

This indicates that MDU Resources has been able to manage its payables more efficiently over the years, taking longer to pay its suppliers in the past but now requiring fewer days to settle its obligations. The decreasing number of days of payables suggests improved liquidity and potentially better negotiating power with suppliers. However, it is essential to consider the reasons behind this trend, as excessively extending payables could have negative implications on supplier relationships and future credit terms.