SM Energy Co (SM)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		6.44	17.05	26.20	24.01	12.89
Number of days of payables	days	56.69	21.41	13.93	15.20	28.32

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.44
= 56.69

To analyze SM Energy Co's number of days of payables, we need specific data on accounts payable and cost of goods sold for each year. Unfortunately, the table provided does not contain the necessary information to calculate the number of days of payables.

The number of days of payables is a financial ratio that indicates the average number of days a company takes to pay its suppliers. It is calculated by dividing the average accounts payable by cost of goods sold and multiplying by 365 days. A lower number of days of payables suggests that the company is paying its suppliers more quickly, which may indicate strong liquidity but could also signal potential cash flow difficulties. Conversely, a higher number of days of payables may imply the company is managing its cash flow effectively but may also indicate strained relationships with suppliers.

Without the specific data on accounts payable and cost of goods sold for SM Energy Co, a detailed analysis of the company's number of days of payables cannot be provided. I recommend obtaining the necessary financial information to calculate and interpret this important ratio accurately for a more in-depth analysis of SM Energy Co's payment practices.