PNM Resources Inc (PNM)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		6.25	8.98	10.45	12.90	7.00	10.87	9.56	8.81	5.09	6.44	4.09	4.72	2.99	5.73	6.33	4.92	4.56	5.66	5.65	5.80
Number of days of payables	days	58.35	40.63	34.92	28.30	52.17	33.58	38.16	41.43	71.73	56.65	89.19	77.38	121.97	63.70	57.68	74.18	79.99	64.51	64.55	62.92

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.25
= 58.35

The number of days of payables for PNM Resources Inc has fluctuated over the past eight quarters. In Q4 2023, the company had an average payment period of 83.78 days, indicating that on average, it took the company approximately 83.78 days to pay its trade payables. This represents an increase from the previous quarter, where the number of days of payables was 56.24 days.

The trend in the number of days of payables over the quarters shows some variability, with fluctuations in payment periods ranging from 37.27 days to 83.78 days. Overall, the average number of days of payables seems to be relatively stable, with some quarters showing longer payment periods compared to others.

Analyzing the number of days of payables can provide insights into the company's liquidity and efficiency in managing its working capital. A longer payment period may indicate that the company has more time to settle its obligations to suppliers, potentially signaling good cash flow management. However, it could also suggest a strain on relationships with suppliers if payments are being delayed excessively. On the other hand, a shorter payment period may indicate prompt payment practices but could also suggest a need for improved cash flow management.

Further analysis in conjunction with other financial ratios and metrics would be necessary to gain a comprehensive understanding of PNM Resources Inc's overall financial health and performance.