Seagate Technology PLC (STX)
Number of days of payables
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 3.05 | 4.14 | 4.26 | 4.81 | 4.53 | |
| Number of days of payables | days | 119.72 | 88.18 | 85.61 | 75.83 | 80.55 |
June 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.05
= 119.72
Seagate Technology PLC's number of days of payables has seen an increasing trend over the past five years. In the latest fiscal year ending June 30, 2024, the company took approximately 119.72 days to pay its suppliers, which is a significant increase compared to the previous year's 88.18 days. This suggests that Seagate is taking longer to settle its outstanding payables, possibly indicating more lenient payment terms negotiated with suppliers or potential liquidity constraints.
Comparing the 2024 figure to that of five years ago, where the number of days of payables was 80.55 days, there is a noticeable upward trajectory, signifying a lengthening of the company's payment cycle over time. This trend may raise concerns about the company's cash flow management or relationships with its suppliers, as extending payment periods can strain supplier relationships if not managed effectively.
Overall, the increasing number of days of payables for Seagate Technology PLC implies a shift in its working capital management strategy towards holding onto cash longer, potentially at the expense of supplier goodwill or in response to operational or financial challenges within the business.
Peer comparison
Jun 30, 2024