Tootsie Roll Industries Inc (TR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 42.21 | 22.82 | 33.65 | 31.69 | 36.03 | |
| Number of days of payables | days | 8.65 | 15.99 | 10.85 | 11.52 | 10.13 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 42.21
= 8.65
Tootsie Roll Industries, Inc. has shown a varying trend in its number of days of payables over the past five years. The number of days of payables reflects how long, on average, the company takes to pay its suppliers or creditors.
In 2023, the number of days of payables decreased significantly to 11.26 days from 20.29 days in 2022, indicating a more efficient management of payable balances during the year. This could suggest that the company improved its payment processes, negotiated better terms with suppliers, or managed its working capital more effectively.
Comparing 2023 to the prior years, the number of days of payables was lower than in 2021 and 2020 when it stood at 14.71 days and 15.81 days, respectively. This suggests that in 2023, Tootsie Roll Industries was able to pay its suppliers more quickly, which could have positive implications for supplier relationships and potential discounts for early payments.
However, the number of days of payables in 2023 was slightly higher than in 2019 when it was 14.06 days. This may indicate that the company extended its payables slightly compared to the prior year.
Overall, the significant decrease in the number of days of payables in 2023 compared to 2022 reflects a positive trend towards more efficient management of payables by Tootsie Roll Industries, Inc. This metric is important as it can impact the company's cash flow, working capital management, and relationships with suppliers.
Peer comparison
Dec 31, 2023