Walgreens Boots Alliance Inc (WBA)
Number of days of payables
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.86 | 11.96 | 11.69 | 13.98 | 9.27 | |
| Number of days of payables | days | 30.78 | 30.53 | 31.21 | 26.10 | 39.39 |
August 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.86
= 30.78
The number of days of payables, also known as the payable turnover period, provides insight into how long on average it takes for a company to pay its suppliers. A lower number of days indicates that the company is taking less time to pay its suppliers, while a higher number of days suggests that the company is taking longer to settle its payables.
Analyzing the trend of Walgreens Boots Alliance Inc's number of days of payables over the past five years, we observe the following:
- In 2023, the number of days of payables was 41.17 days, representing a slight increase from the previous year. This suggests that the company took slightly longer to pay its suppliers in 2023 compared to 2022.
- In 2022, the number of days of payables was 39.34 days, showing a marginal increase compared to 2021. This indicates a slight elongation in the payable turnover period.
- In 2021, the number of days of payables was 38.92 days, illustrating a relatively stable period for the company in paying its suppliers compared to the previous year.
- In 2020, the number of days of payables was 47.32 days, marking a noticeable decrease from the prior year. This suggests an improvement in the company's efficiency in settling its payables in 2020.
- In 2019, the number of days of payables was 49.02 days, indicating a longer period for the company to pay its suppliers compared to the subsequent years.
In summary, Walgreens Boots Alliance Inc's number of days of payables has shown fluctuation over the past five years. The company experienced an elongation in the payable turnover period in 2020, which improved in 2021 and 2022 before showing a slight increase in 2023. This trend indicates variations in the company's payment practices and relationship with its suppliers, which should be further examined in conjunction with other financial metrics for a comprehensive evaluation of the company's liquidity and supplier management.
Peer comparison
Aug 31, 2023
See also:
Walgreens Boots Alliance Inc Average Payables Payment Period