Merck & Company Inc (MRK)

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		6.90	8.01	8.18	8.29	7.52	8.37	8.45	7.93	7.14	8.81	8.37	7.44	5.76	8.98	7.76	7.55	6.88	6.98	7.97	7.85
Number of days of payables	days	52.93	45.58	44.63	44.02	48.51	43.60	43.18	46.04	51.11	41.44	43.62	49.04	63.41	40.64	47.01	48.37	53.04	52.28	45.80	46.49

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.90
= 52.93

The number of days of payables for Merck & Company Inc has shown some fluctuations over the years based on the provided data. The company's payables turnover period reflects the average number of days it takes for Merck to pay its suppliers or creditors.

From March 31, 2020, to December 31, 2024, the number of days of payables ranged from a low of 40.64 days on September 30, 2021, to a high of 63.41 days on December 31, 2021. Overall, the trend indicates that Merck has been able to manage its payables efficiently as the numbers have generally ranged between 40 to 60 days during this period.

It is worth noting that a lower number of days of payables suggests that the company is paying its suppliers more quickly, potentially indicating good relationships with vendors or efficient working capital management. On the other hand, a higher number of days of payables may imply that the company is taking longer to pay its suppliers, which could affect relationships or cash flow management.

In conclusion, while there have been fluctuations in Merck's number of days of payables over the years, the company has generally maintained a reasonable turnover period, reflecting a balance between managing cash flow effectively and maintaining positive relationships with its suppliers.