Advanced Drainage Systems Inc (WMS)

Advanced Drainage Systems Inc's number of days of payables has shown an increasing trend over the past five years. As of March 31, 2024, the company took approximately 471.14 days to pay off its accounts payable, compared to 447.94 days in the previous year and 477.54 days in the year before that. This indicates a significant elongation in the payment period to suppliers, potentially signaling liquidity challenges or changes in payment terms.

The substantial increase from 150.47 days in 2021 to 471.14 days in 2024 raises concerns about the management of working capital and the company's ability to meet its short-term obligations in a timely manner. Moreover, the number of days of payables exceeding 365 days implies that the company may be using its accounts payable as a significant source of financing, which could indicate inefficiencies in operations or financial distress.

Overall, the trend of increasing days of payables warrants further investigation into Advanced Drainage Systems Inc's financial health and operational efficiency.