PACCAR Inc (PCAR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | — | — | — | — | — | |
| Number of days of payables | days | — | — | — | — | — |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ —
= —
Paccar Inc.'s number of days of payables provides insight into the company's ability to manage its accounts payable effectively. A lower number of days indicates that the company is taking less time to pay its suppliers, which could potentially signal strong liquidity and efficient working capital management.
Analyzing the trend over the past five years, we observe fluctuations in the number of days of payables. In 2023, Paccar Inc. took approximately 22.61 days to settle its payables, a decrease from the previous year's figure of 26.09 days in 2022. This reduction suggests that the company may have improved its payment efficiency or negotiated more favorable terms with its suppliers.
Comparing the current level to 2019, where the company took 19.80 days to pay its obligations, there has been a slight increase. This uptick could indicate a shift in Paccar Inc.'s payment strategy or changes in its supplier relationships.
Overall, while the number of days of payables fluctuates from year to year, it is essential to monitor this metric alongside other financial ratios to assess Paccar Inc.'s overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023