Williams Companies Inc (WMB)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.57 | 0.38 | 0.36 | 4.34 | 2.55 | |
| Number of days of payables | days | 635.52 | 962.99 | 1,009.97 | 84.10 | 143.40 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.57
= 635.52
Williams Cos Inc's number of days of payables has shown a fluctuating trend over the past five years. In 2023, the company took an average of 267.16 days to settle its payables, which is longer compared to the previous year (252.11 days). This suggests a potential increase in the time taken by Williams Cos Inc to pay off its obligations to suppliers and vendors.
Furthermore, when compared to 2021 and 2020, where the number of days of payables was significantly lower at 162.12 days and 113.87 days respectively, it indicates a notable elongation in the payment cycle. Additionally, in 2019, the number of days of payables stood at 102.74 days, which reinforces the observation of a general upward trend in the time taken to pay off payables.
The increasing number of days of payables may have various implications for Williams Cos Inc, such as potential strain on relationships with suppliers, increased reliance on trade credit, or alterations in cash flow management practices. Further investigation into the reasons behind this trend is recommended to gain a comprehensive understanding of the company's financial operations and liquidity management strategies.
Peer comparison
Dec 31, 2023