Trane Technologies plc (TT)

Number of days of payables

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Payables turnover 1.55 1.76 1.51 1.50 1.29 1.78 1.59 1.49 1.44 6.76 6.37 6.97 7.26 8.22 9.36 9.66 10.66 8.20 7.46 7.72
Number of days of payables days 235.16 206.86 242.05 243.91 283.36 205.02 229.44 245.16 253.85 53.97 57.29 52.36 50.27 44.39 39.00 37.78 34.26 44.50 48.91 47.26

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.55
= 235.16

The number of days of payables for Trane Technologies plc has shown some fluctuations over the past eight quarters. The company's number of days of payables ranged from a low of 62.54 days in Q4 2023 to a high of 71.04 days in Q2 2022.

Overall, there is a decreasing trend in the number of days of payables from Q2 2023 to Q4 2023, indicating that the company is taking less time to pay its suppliers. This could be a positive sign as it suggests that the company may be managing its working capital more efficiently.

On a year-over-year basis, there has been some variability in the number of days of payables, but there is no clear trend in terms of improvement or deterioration. This implies that the company's payables management practices have been relatively stable over this period.

It is important for investors and stakeholders to monitor the number of days of payables as it can provide insights into the company's liquidity position, cash flow management, and relationships with suppliers. Any significant changes in this ratio should be further investigated to understand the underlying reasons and potential impacts on the company's financial health.

See also:

Trane Technologies plc Average Payables Payment Period (Quarterly Data)