NOV Inc. (NOV)

Number of days of payables

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		7.47	7.06	6.29	6.37	6.52	7.22	6.93	7.76	7.76	9.30	9.35	10.90	11.57	12.96	12.41	11.49	10.68	10.78	10.80	10.58
Number of days of payables	days	48.88	51.67	57.99	57.31	56.02	50.56	52.69	47.02	47.03	39.24	39.05	33.49	31.56	28.17	29.42	31.76	34.19	33.86	33.81	34.49

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.47
= 48.88

- The number of days of payables for NOV Inc has been relatively stable over the past eight quarters, ranging from a low of 47.02 days in Q1 2022 to a high of 57.99 days in Q2 2023.
- This indicates that the company takes on average approximately 50-58 days to pay its suppliers and vendors.
- A longer number of days of payables may suggest that NOV Inc is able to secure favorable credit terms with its suppliers, allowing it to hold onto cash for a longer period before making payments.
- Alternatively, a shorter number of days of payables could indicate that the company is managing its cash flow more efficiently by paying its obligations promptly.
- Monitoring this ratio over time can provide insights into changes in the company's management of working capital and relationships with suppliers.