Terex Corporation (TEX)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.66 | 5.68 | 5.82 | 6.86 | 6.82 | |
| Number of days of payables | days | 64.52 | 64.28 | 62.72 | 53.22 | 53.52 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.66
= 64.52
The number of days of payables for Terex Corp. has been consistent over the past five years, ranging from 53.22 days in 2020 to 64.52 days in 2023. This ratio measures the average number of days it takes the company to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, potentially signaling liquidity or cash flow issues. Conversely, a lower number of days of payables could indicate efficient management of payables and strong supplier relationships. Terex Corp. has maintained a stable number of days of payables, suggesting a consistent approach to managing supplier payments over the years.