TE Connectivity Ltd (TEL)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.38 | 8.13 | 6.25 | 8.75 | 8.09 | |
| Number of days of payables | days | 43.56 | 44.90 | 58.37 | 41.70 | 45.11 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.38
= 43.56
TE Connectivity Ltd's number of days of payables has shown some fluctuations over the past five years. In 2023, the number of days of payables decreased to 43.56 days from 44.90 days in 2022. This indicates that the company took fewer days to pay off its trade payables in 2023 compared to the previous year.
Comparing 2023 to earlier years, the number of days of payables was lower than in 2021 when it was 58.37 days. However, in 2020 and 2019, the number of days of payables was relatively similar at 41.70 days and 45.11 days, respectively.
A decreasing trend in the number of days of payables can sometimes suggest that the company is managing its accounts payable efficiently by paying its suppliers more quickly. This may be beneficial in terms of maintaining good relationships with suppliers, negotiating favorable payment terms, and potentially benefiting from early payment discounts. However, it's important to note that excessively reducing the number of days of payables can also indicate liquidity issues or challenges in managing working capital effectively.
Overall, the gradual decrease in TE Connectivity Ltd's number of days of payables in 2023 compared to the previous year could reflect improved efficiency in managing its accounts payable, but further analysis of the company's financial health and management practices is recommended to assess the implications of this trend.
Peer comparison
Sep 30, 2023