MaxLinear Inc (MXL)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 14.27 | 6.86 | 7.49 | 8.12 | 11.12 | |
| Number of days of payables | days | 25.57 | 53.20 | 48.76 | 44.97 | 32.82 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.27
= 25.57
To analyze MaxLinear Inc's number of days of payables, we can observe an interesting trend in the data over the past five years. The number of days of payables decreased significantly in 2019, remained relatively stable in 2020 and 2021, and then decreased sharply in 2022 before increasing in 2023.
The number of days of payables represents the average number of days a company takes to pay its suppliers. A lower number indicates that the company is paying its bills more quickly, while a higher number suggests a longer payment period.
The decrease in the number of days of payables from 2019 to 2022 indicates that MaxLinear Inc was paying its suppliers more quickly during this period. This may indicate improved liquidity or negotiation power with suppliers. However, the increase in 2023 suggests a reversal of this trend, potentially indicating a shift in the company's payment strategies or supplier relationships.
It is important to consider the company's payables policy in conjunction with its industry and overall financial health to assess the impact of these changes. Overall, the trend in MaxLinear Inc's number of days of payables reflects changes in its working capital management and supplier relationships, which are vital considerations for its financial performance and operational efficiency.
Peer comparison
Dec 31, 2023