Stepan Company (SCL)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.44 | 6.69 | 6.52 | 6.90 | 8.55 | |
| Number of days of payables | days | 38.68 | 54.52 | 55.95 | 52.93 | 42.67 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.44
= 38.68
The number of days of payables for Stepan Co. has fluctuated over the past five years. In 2023, the company took an average of 41.53 days to pay its suppliers, which represents an improvement compared to the previous year when it took 58.45 days. In 2021 and 2020, the number of days of payables was 60.52 days and 58.15 days, respectively. The lowest number of days of payables was observed in 2019 at 46.68 days.
A decreasing trend in the number of days of payables can indicate that Stepan Co. is paying its suppliers more promptly, potentially improving its relationships with them. However, it is also essential to assess the company's cash management practices and liquidity position to ensure that the reduction in payables does not negatively impact its financial stability.
Peer comparison
Dec 31, 2023