Simulations Plus Inc (SLP)
Number of days of payables
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 80.76 | 48.10 | 27.39 | 30.34 | 44.25 | |
| Number of days of payables | days | 4.52 | 7.59 | 13.33 | 12.03 | 8.25 |
August 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 80.76
= 4.52
The number of days of payables for Simulations Plus Inc. has decreased from 13.33 days in 2021 to 4.52 days in 2023. This indicates that the company is taking less time to pay its trade payables, which could be a positive sign of efficient cash management and strong relationships with suppliers. The decreasing trend suggests that the company is effectively managing its payments to suppliers, potentially improving its working capital and overall financial health. However, it is important to carefully consider the reasons behind this decrease and assess its impact on the company's overall financial strategy.
Peer comparison
Aug 31, 2023