Merck & Company Inc (MRK)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.53 | 7.35 | 5.56 | 6.89 | 7.45 | |
| Number of days of payables | days | 48.49 | 49.63 | 65.69 | 52.98 | 48.97 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.53
= 48.49
The number of days of payables for Merck & Co Inc has shown a fluctuating trend over the past five years. In 2023, the number of days of payables decreased to 88.77 days from 89.39 days in 2022. This indicates that the company took slightly fewer days to pay its suppliers in 2023 compared to the previous year.
Looking back further, in 2021, the number of days of payables was significantly higher at 123.46 days, which suggests that the company took longer to settle its payables that year. In 2020 and 2019, the number of days of payables stood at 108.29 days and 96.68 days, respectively, showing a relatively stable trend during those years.
Overall, the decreasing trend in the number of days of payables from 2022 to 2023 indicates a potential improvement in the company's efficiency in managing its payables. However, it would be advisable to further analyze the reasons behind this fluctuation to assess the impact on the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023