Somnigroup International Inc. (SGI)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.98 | 7.98 | 6.42 | 6.29 | 7.01 | |
| Number of days of payables | days | 40.63 | 45.73 | 56.88 | 58.03 | 52.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.98
= 40.63
The number of days of payables for Somnigroup International Inc. has shown a fluctuating trend over the past five years. As of December 31, 2019, the company took an average of 52.09 days to pay its outstanding payables, which increased to 58.03 days by December 31, 2020. Subsequently, there was a slight decrease to 56.88 days by December 31, 2021.
However, there was a significant improvement in payables management by December 31, 2022, as the number of days to pay decreased notably to 45.73 days. This trend continued to improve by December 31, 2023, with the company taking only 40.63 days on average to settle its payables.
Overall, the decreasing trend in the number of days of payables indicates that Somnigroup International Inc. has been more efficient in managing its payables over the years. This may reflect better cash flow management or negotiation of favorable credit terms with its suppliers. It is essential to continue monitoring this ratio to ensure sustainable and efficient working capital management.
Peer comparison
Dec 31, 2023