Envista Holdings Corp (NVST)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.27 | 4.79 | 5.83 | 3.72 | 4.50 | |
| Number of days of payables | days | 58.19 | 76.15 | 62.65 | 98.15 | 81.15 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.27
= 58.19
The number of days of payables for Envista Holdings Corp has fluctuated over the past five years. In 2023, the company took approximately 58.19 days, on average, to pay its suppliers, which marks a decrease from the previous year's figure of 76.15 days. This implies that in 2023, Envista Holdings Corp managed to negotiate more favorable payment terms with its suppliers, allowing the company to hold onto its cash for a longer period.
Comparing the 2023 data with that of 2021 and 2020, we observe that the number of days of payables has decreased significantly. This trend might indicate that the company has improved its working capital management practices, possibly by implementing more efficient payment processes or optimizing its cash flow operations.
On the other hand, the 2023 figure is slightly higher than the 2019 data, where the number of days of payables was 61.30 days. It is essential to note that while a longer payment period can benefit a company by preserving cash, excessively extending payables may strain relationships with suppliers. Therefore, Envista Holdings Corp should continue to monitor and manage its payables effectively to strike a balance between cash management and supplier relationships.
Peer comparison
Dec 31, 2023