nVent Electric PLC (NVT)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.29 | 9.58 | 7.92 | 11.31 | 9.86 | |
| Number of days of payables | days | 32.33 | 38.11 | 46.09 | 32.28 | 37.02 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.29
= 32.33
nVent Electric plc's number of days of payables has varied over the past five years. In 2023, the company took approximately 52.37 days to pay its suppliers, which is a slight increase from the previous year. This suggests that the company may be taking slightly longer to settle its accounts payable, which could potentially impact cash flow and supplier relationships.
When compared to 2021, nVent Electric plc's payables turnover has improved, as in 2021 the number of days of payables was at its highest level of 62.67 days. This significant decrease in the number of days to pay suppliers indicates that the company is managing its payables more efficiently in recent years.
Overall, a lower number of days of payables indicates that the company is managing its working capital effectively by paying its suppliers faster. However, it is essential for nVent Electric plc to strike a balance between managing its cash flow and maintaining good relations with its suppliers. Monitoring and analyzing this ratio over time can provide insights into the company's liquidity position and operational efficiency.
Peer comparison
Dec 31, 2023