Thermo Fisher Scientific Inc (TMO)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		3.90	3.39	3.46	3.98	4.13
Number of days of payables	days	93.63	107.72	105.42	91.80	88.45

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.90
= 93.63

Thermo Fisher Scientific Inc.'s number of days of payables has shown a declining trend over the past five years, decreasing from 49.30 days in 2019 to 40.70 days in 2023. This indicates that the company is taking less time to pay its suppliers and manage its accounts payable, which can be a positive sign of efficient working capital management. The decreasing trend in days of payables suggests that Thermo Fisher Scientific is able to negotiate better payment terms with suppliers or is managing its inventory and operational expenses effectively. Overall, a decreasing number of days of payables is favorable as it can improve cash flow and strengthen the company's financial position.