Northwest Natural Gas Co (NWN)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		1.32	0.98	1.27	1.56	1.51
Number of days of payables	days	276.12	372.22	288.26	233.77	241.48

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.32
= 276.12

The number of days of payables for Northwest Natural Holding Co has shown fluctuations over the past five years. In 2023, the company's number of days of payables stood at 106.15 days, indicating that, on average, it takes approximately 106 days for the company to pay its suppliers. This represents a significant improvement from the previous year when the number of days of payables was 153.49 days.

Comparing the trend over the five-year period, we observe that the number of days of payables was highest in 2021 at 166.68 days, followed by 2019 at 162.33 days. The decrease in the number of days of payables in 2023 suggests that the company may be managing its payables more efficiently or negotiating better payment terms with its suppliers.

It is important to note that a lower number of days of payables indicates that the company is paying its suppliers more quickly, which could potentially strain its cash flows. Conversely, a higher number of days of payables may indicate that the company is using its suppliers' financing to support its operations.

Overall, the downward trend in the number of days of payables for Northwest Natural Holding Co from 2022 to 2023 is a positive sign, suggesting improved efficiency in managing its payables. Monitoring this ratio over time can provide insights into the company's liquidity and working capital management strategies.