Sonos Inc (SONO)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.36 | 4.20 | 6.21 | 4.71 | 4.30 | |
| Number of days of payables | days | 49.57 | 87.00 | 58.77 | 77.47 | 84.84 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.36
= 49.57
To analyze Sonos Inc's number of days of payables, we can observe the trend over the last five years. The number of days of payables represents the average number of days it takes for the company to pay its accounts payable.
Sonos Inc's number of days of payables has fluctuated over the past five years, indicating changes in the company's payment practices. In 2023, the number of days of payables decreased to 73.09 days from 128.20 days in 2022. This suggests that the company has been managing its accounts payable more efficiently by reducing the time it takes to settle outstanding obligations to suppliers and creditors.
The decrease in the number of days of payables could be attributed to improved cash flow management, renegotiated payment terms with suppliers, or other operational efficiencies. It indicates that Sonos Inc may have strengthened its working capital position by optimizing the timing of its payments.
Overall, the downward trend in the number of days of payables reflects positively on Sonos Inc's ability to effectively manage its trade credit obligations, potentially leading to improved supplier relationships and financial stability. However, further analysis of the company's financial health and operational performance would provide a more comprehensive understanding of the factors driving these changes.
Peer comparison
Sep 30, 2023