Stepan Company (SCL)
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 | 9.44 | 9.43 | 8.39 | 8.74 | 6.69 | 7.10 | 6.51 | 6.40 | 6.52 | 6.26 | 6.35 | 6.42 | 6.90 | 7.71 | 8.57 | 8.65 | 8.55 | 9.59 | 9.42 | 10.17 | |
| Number of days of payables | days | 38.68 | 38.70 | 43.51 | 41.78 | 54.52 | 51.41 | 56.06 | 56.99 | 55.95 | 58.30 | 57.46 | 56.88 | 52.93 | 47.36 | 42.60 | 42.18 | 42.67 | 38.07 | 38.76 | 35.91 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.44
= 38.68
Stepping into the analysis of Stepan Co.'s number of days of payables from Q1 2022 to Q4 2023, a discernible pattern emerges. The number of days of payables has shown variability throughout the eight quarters under review.
Starting at 61.33 days in Q1 2022, it decreased to 60.12 days in Q2 2022, before rising again to 55.23 days in Q3 2022. Moving into Q4 2022, there was a significant uptick to 58.45 days. However, this trend reversed in 2023, declining to 44.75 days in Q1, slightly increasing to 46.62 days in Q2, and then stabilizing around the 41-42 day range in Q3 and Q4 2023.
This analysis suggests that Stepan Co. has made efforts to manage its payables effectively over the quarters, with fluctuations likely influenced by the company's payment policies, supplier relationships, and operational dynamics. The recent trend of decreasing days of payables from Q1 to Q4 2023 may indicate improved efficiency in managing payables, potentially leading to enhanced working capital management and liquidity for the company.
Peer comparison
Dec 31, 2023