Mueller Water Products (MWA)
Number of days of payables
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.79 | 8.71 | 7.19 | 8.18 | 9.45 | |
| Number of days of payables | days | 46.88 | 41.91 | 50.76 | 44.62 | 38.63 |
September 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.79
= 46.88
The number of days of payables for Mueller Water Products demonstrates notable fluctuations over the specified period from September 30, 2020, to September 30, 2024. At the end of fiscal year 2020, the company's payables period was approximately 38.63 days, indicating the average duration it took the company to settle its accounts payable. This figure increased significantly in 2021 to 44.62 days, suggesting a lengthening in the time taken to pay suppliers, which may reflect changes in credit terms or cash management policies.
The upward trend continued into 2022, reaching 50.76 days, the highest point within the observed timeframe. This elongation could indicate an intentional strategy to optimize cash flow or renegotiate longer credit terms with suppliers. However, in fiscal year 2023, there was a notable decrease to approximately 41.91 days, indicating a reduction in the payables period, potentially reflecting efforts to improve liquidity or align payment practices with industry standards.
By 2024, the payables period slightly increased again to 46.88 days, still elevated relative to 2020 but below the 2022 peak. The overall trend reveals periods of both elongation and contraction in the accounts payable cycle, which may be influenced by external credit conditions, internal cash management decisions, or strategic supplier negotiations. These shifts suggest a dynamic approach to managing short-term liabilities, emphasizing the importance of monitoring this ratio in assessing the company's liquidity and operational strategies over time.
Peer comparison
Sep 30, 2024