Quanex Building Products (NX)
Number of days of payables
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 13.42 | 13.91 | 11.08 | 9.88 | 13.93 | |
| Number of days of payables | days | 27.20 | 26.24 | 32.93 | 36.95 | 26.20 |
October 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.42
= 27.20
The number of days of payables is a key financial ratio that measures the average number of days it takes for a company to pay its suppliers and vendors. This ratio is important as it reflects the efficiency of a company's working capital management and its relationship with its suppliers.
Quanex Building Products Corp's number of days of payables has varied over the past five years. In 2023, the number of days of payables was 31.82 days, which is an increase from 29.84 days in 2022. This indicates that the company took slightly longer to pay its suppliers in 2023 compared to 2022. However, the 2023 figure is still lower than the 38.08 days in 2021 and 42.85 days in 2020, suggesting an improvement in the company's ability to manage its payables.
The decrease in the number of days of payables from 2020 to 2022 indicates that Quanex Building Products Corp has been more efficient in managing its payables, possibly negotiating better payment terms with its suppliers or streamlining its accounts payable processes.
Overall, the trend in the number of days of payables for Quanex Building Products Corp indicates a positive direction in terms of managing its payables efficiently and effectively. A decreasing trend in the number of days of payables suggests that the company has been able to pay its suppliers more promptly, which can have positive implications for its cash flow and relationships with suppliers. However, it is important to monitor this ratio in the future to ensure that the company maintains a healthy balance in managing its payables.
Peer comparison
Oct 31, 2023