Rockwell Automation Inc (ROK)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.65 | 6.37 | 6.57 | 7.65 | 7.72 | |
| Number of days of payables | days | 54.92 | 57.34 | 55.54 | 47.69 | 47.31 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.65
= 54.92
The number of days of payables, also known as the payable turnover period, measures the average number of days it takes a company to pay its suppliers. It is calculated by dividing the accounts payable by the cost of goods sold and then multiplying by 365 days.
For Rockwell Automation Inc, the number of days of payables has shown some fluctuations over the past five years. In 2023, the number of days of payables was 78.60 days, slightly lower than the previous year's 80.55 days. This indicates that the company took slightly fewer days to pay its suppliers in 2023 compared to 2022.
Looking further back, the number of days of payables in 2021 was 79.22 days, which increased from 67.22 days in 2020 and 66.81 days in 2019. This shows a significant increase in the number of days it took the company to pay its suppliers in 2021 compared to the previous two years.
A high number of days of payables could indicate that the company is taking longer to settle its bills with suppliers, which could be a sign of strained liquidity or possibly taking advantage of extended payment terms. On the other hand, a lower number of days of payables could mean the company is managing its cash flow efficiently or improving its relationships with suppliers.
Overall, the trend in Rockwell Automation Inc's number of days of payables shows some variability, and further analysis would be needed to understand the reasons behind these fluctuations and their implications for the company's financial performance and management of working capital.
Peer comparison
Sep 30, 2023