Tesla Inc (TSLA)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		5.48	3.97	4.01	4.12	5.44
Number of days of payables	days	66.58	91.87	90.98	88.68	67.11

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.48
= 66.58

To analyze Tesla Inc's number of days of payables, we can calculate the average number of days it takes for the company to pay its suppliers. By using the formula:

Number of days of payables = (Accounts Payable / Cost of Goods Sold) * 365

The trend in Tesla Inc's number of days of payables over the past five years shows a fluctuating pattern. In 2023, the number of days of payables decreased to 66.58 days from 91.87 days in 2022. This indicates that the company is taking fewer days to pay its suppliers, which may suggest improved efficiency in managing its payable obligations. However, it is important to note that the decrease in the number of days of payables could also reflect changes in the company's payment terms or supplier relationships.

In the preceding years, the number of days of payables ranged from 67.11 days in 2019 to 91.87 days in 2022. This pattern suggests some volatility in Tesla Inc's payables management over the years. It is essential to further investigate the reasons behind these fluctuations, as they may be influenced by factors such as changes in purchasing practices, negotiation of payment terms with suppliers, or adjustments in production levels.

Overall, the decreasing trend in the number of days of payables in 2023 indicates a potential improvement in Tesla Inc's ability to manage its payables efficiently. However, it is important to consider additional financial and operational factors to gain a comprehensive understanding of the company's payables management.