Terex Corporation (TEX)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.00 | 5.65 | 5.68 | 5.82 | 6.86 | |
| Number of days of payables | days | 52.16 | 64.55 | 64.28 | 62.72 | 53.22 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.00
= 52.16
The number of days of payables for Terex Corporation has shown a fluctuating trend over the past five years. As of December 31, 2020, the company took an average of 53.22 days to pay its suppliers. This figure increased to 62.72 days by December 31, 2021, and continued to rise to 64.28 days by December 31, 2022, showing a lengthening payment period.
By December 31, 2023, the number of days of payables slightly increased to 64.55 days. However, there was a notable improvement by December 31, 2024, with the number of days decreasing to 52.16 days, indicating a more efficient payment process or potentially renegotiated terms with suppliers.
Overall, monitoring the number of days of payables can give insights into Terex Corporation's liquidity management and efficiency in managing its supplier payments. A decreasing trend in the number of days may suggest improved working capital management, while an increasing trend could indicate challenges in meeting payment obligations timely.