Rockwell Automation Inc (ROK)
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 | 8.27 | 6.60 | 6.99 | 6.89 | 6.35 | 6.31 | 6.39 | 6.69 | 7.16 | 6.54 | 6.24 | 6.51 | 7.14 | 7.62 | 8.04 | 7.34 | 7.69 | 7.70 | 7.81 | 6.93 | |
| Number of days of payables | days | 44.15 | 55.34 | 52.19 | 52.95 | 57.47 | 57.84 | 57.11 | 54.57 | 51.01 | 55.84 | 58.47 | 56.09 | 51.10 | 47.91 | 45.42 | 49.76 | 47.47 | 47.42 | 46.72 | 52.69 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.27
= 44.15
The number of days of payables, also known as the payables turnover period, measures the average number of days it takes a company to pay its suppliers. A lower number of days indicates that the company is paying its suppliers more quickly, while a higher number of days suggests a longer time taken to settle payables.
Rockwell Automation Inc's number of days of payables has shown some fluctuations over the past eight quarters, ranging from a low of 62.84 days to a high of 80.55 days. The most recent figure as of December 31, 2023, stood at 62.84 days, indicating that the company took approximately 63 days on average to pay its suppliers. This represents a considerable improvement from the previous quarter's figure of 78.60 days.
The downward trend in the number of days of payables suggests that Rockwell Automation Inc is managing its payables more efficiently, possibly negotiating more favorable credit terms with its suppliers or improving its working capital management. However, it's important to note that the payables turnover period can also be influenced by seasonal factors or specific business strategies.
Overall, a declining trend in the number of days of payables is generally viewed positively, as it can indicate improved cash flow management and potentially stronger supplier relationships. Nonetheless, it's essential to consider this ratio in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023