Timken Company (TKR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.27 | 9.74 | 8.51 | 8.88 | 11.01 | |
| Number of days of payables | days | 32.39 | 37.49 | 42.90 | 41.10 | 33.15 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.27
= 32.39
The number of days of payables for Timken Co. has shown a decreasing trend over the past five years. In 2019, the company took approximately 41.58 days to pay its suppliers, which increased to 51.24 days by the end of 2020. However, starting from 2021, there has been a consistent improvement in managing payables, with the number of days decreasing to 51.79 days in 2021, further dropping to 45.95 days in 2022, and reaching the lowest point of 41.11 days by the end of 2023.
This trend indicates that Timken Co. has been more efficient in managing its payables over the years, taking fewer days to settle its outstanding balances with suppliers. A lower number of days of payables can suggest better cash flow management and potentially stronger supplier relationships. Overall, the decreasing trend in this ratio reflects positively on the company's ability to manage its payables effectively.
Peer comparison
Dec 31, 2023