Micron Technology Inc (MU)

Number of days of payables

		Aug 29, 2024	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020
Payables turnover		6.87	8.66	6.92	9.00	6.81
Number of days of payables	days	53.11	42.13	52.73	40.54	53.63

August 29, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.87
= 53.11

The number of days of payables for Micron Technology Inc has fluctuated over the past five years, ranging from 40.54 days to 53.63 days. This ratio represents the average number of days a company takes to pay its suppliers and is a key indicator of the company's liquidity and efficiency in managing its payables.

In 2021, Micron had the lowest number of days of payables at 40.54 days, indicating that the company was able to efficiently manage its payables and potentially negotiate favorable payment terms with its suppliers. However, this figure increased to 53.63 days in 2020, suggesting a slower payment cycle and potentially signaling liquidity concerns or strained relationships with suppliers.

In 2022 and 2024, the number of days of payables remained relatively high at 52.73 days and 53.11 days respectively, indicating a longer average payment period. This may have implications for the company's cash flow management and working capital efficiency.

Overall, the trend in Micron's number of days of payables suggests fluctuations in the company's ability to manage its payables effectively and efficiently over the past five years. Analysts may further investigate the reasons behind these fluctuations to gain a better understanding of the company's financial performance and liquidity position.