Waste Management Inc (WM)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.87 | 8.82 | 8.22 | 9.63 | 10.13 | |
| Number of days of payables | days | 46.38 | 41.39 | 44.38 | 37.89 | 36.03 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.87
= 46.38
The number of days of payables for Waste Management Inc has shown an increasing trend over the past five years. As of December 31, 2020, the company took an average of 36.03 days to settle its payables, which increased to 37.89 days by the end of 2021. This trend continued with a further increase to 44.38 days by December 31, 2022. However, there was a slight decrease in the average number of days of payables to 41.39 days by the end of 2023, followed by another increase to 46.38 days by December 31, 2024.
The increase in the number of days of payables may indicate a slower pace of settling trade payables, which could imply that the company is taking longer to pay its suppliers or trade creditors. This might be a strategic move to manage cash flows or could potentially be a result of extended credit terms negotiated with suppliers.
It is essential for the company to monitor and manage its payables effectively to ensure the sustainability of its supplier relationships and maintain healthy cash flow management. Additionally, further analysis of the reasons behind the fluctuations in the number of days of payables would provide deeper insights into the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024