Advanced Drainage Systems Inc (WMS)
Number of days of payables
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 0.77 | 0.90 | 0.80 | 0.84 | 0.81 | 1.19 | 0.85 | 0.67 | 0.73 | 2.34 | 1.70 | 1.86 | 2.43 | 3.90 | 3.66 | 4.35 | 3.71 | 7.13 | 6.90 | 9.78 | |
| Number of days of payables | days | 471.14 | 403.58 | 455.19 | 432.53 | 447.94 | 305.68 | 429.51 | 548.28 | 496.75 | 155.95 | 214.14 | 195.89 | 150.47 | 93.65 | 99.61 | 83.91 | 98.29 | 51.22 | 52.91 | 37.34 |
March 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.77
= 471.14
The number of days of payables for Advanced Drainage Systems Inc fluctuated over the past few quarters. The trend shows an increase in the number of days of payables from the low of 37.34 days in June 2019 to the high of 548.28 days in June 2022. This increase indicates a lengthening of the company's payment cycle, possibly signaling challenges in managing trade credit relationships or cash flow constraints.
However, the number of days of payables decreased substantially in the subsequent quarters, reaching 305.68 days by December 2022, possibly reflecting efforts to improve working capital management. The trend reversed again in the following quarters, with the number of days of payables increasing to 471.14 days by March 2024.
Overall, the analysis suggests that Advanced Drainage Systems Inc experienced fluctuations in its payables management, indicating potential changes in the company's approach to managing vendor payments and working capital. Investors and stakeholders may need to monitor this metric closely to understand the company's liquidity position and financial management practices.