Resideo Technologies Inc (REZI)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.23 | 6.37 | 5.99 | 5.22 | 5.29 | |
| Number of days of payables | days | 58.59 | 57.27 | 60.94 | 69.92 | 68.98 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.23
= 58.59
The number of days of payables for Resideo Technologies Inc has shown a fluctuating trend over the past five years. In 2023, the company took approximately 72.66 days, on average, to pay its suppliers and vendors, which is slightly higher compared to the previous year. This implies that Resideo is managing its payables effectively. However, when compared to 2021 and 2020, the number of days of payables has decreased, indicating that the company is paying its obligations sooner.
It is essential for a company to strike a balance in managing its payables – paying promptly to maintain good relationships with suppliers while ensuring efficient cash flow management. Resideo's performance in this area over the years suggests a conscientious approach to managing its payment obligations.