PHINIA Inc. (PHIN)
Number of days of payables
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Payables turnover | 5.83 | 5.05 | 4.73 | |
| Number of days of payables | days | 62.57 | 72.21 | 77.11 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.83
= 62.57
The number of days of payables for PHINIA Inc. has shown a decreasing trend over the course of the year. Specifically, as of March 31, 2024, the company had an average payable period of 77.11 days, which decreased to 72.21 days by September 30, 2024, and further decreased to 62.57 days by December 31, 2024.
This trend indicates that PHINIA Inc. is taking fewer days to pay its suppliers and vendors, which may suggest a more efficient management of its accounts payable. A decreasing number of days of payables can sometimes indicate improved liquidity or better negotiation power with suppliers to secure more favorable credit terms.
However, a sharp decrease in the number of days of payables should be carefully monitored to ensure that it is not negatively impacting the company's ability to manage its working capital effectively. Understanding the reasons behind the decreasing trend and its overall impact on the company's financial position and cash flow management is essential for a comprehensive analysis of PHINIA Inc.'s payables management.
Peer comparison
Dec 31, 2024