Merck & Company Inc (MRK)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		6.89	7.53	7.35	5.56	6.89
Number of days of payables	days	52.94	48.49	49.63	65.69	52.98

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.89
= 52.94

The number of days of payables for Merck & Company Inc has shown some fluctuations over the past five years.

As of December 31, 2020, the company's number of days of payables was 52.98 days. This indicates that, on average, it took Merck & Company Inc about 52.98 days to pay its accounts payable during that period.

By December 31, 2021, the number of days of payables increased to 65.69 days, suggesting a lengthening of the company's payable cycle. This could be due to various factors such as changes in payment terms with suppliers or changes in company policies.

In the following year, by December 31, 2022, the number of days of payables decreased to 49.63 days. This reduction may indicate improved efficiency in managing payables or renegotiations with suppliers for more favorable terms.

As of December 31, 2023, the number of days of payables further decreased to 48.49 days, continuing the trend of a shorter payable cycle. This could imply effective cash flow management or tighter control over payment practices.

By December 31, 2024, the number of days of payables increased slightly to 52.94 days, approaching the level seen in 2020. This fluctuation suggests ongoing adjustments in the company's payables management strategies.

Overall, fluctuations in the number of days of payables for Merck & Company Inc over the past five years indicate the company's responsiveness to changing market conditions and its efforts to optimize cash flow management.