Watsco Inc (WSO)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 14.33 | 11.50 | 12.67 | 15.23 | 15.08 | |
| Number of days of payables | days | 25.48 | 31.75 | 28.82 | 23.96 | 24.21 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 14.33
= 25.48
The number of days of payables for Watsco Inc. has shown fluctuations over the past five years. As of December 31, 2023, the company took approximately 25.48 days to pay its outstanding payables. This represents a decrease from the previous year when it took around 31.75 days to settle its payables.
Comparing the current figure to the trend over the past five years, we observe that the number of days of payables has varied. In 2021 and 2019, the company had similar payment patterns with approximately 28.82 days and 24.21 days taken to pay its obligations, respectively. In 2020, there was a decrease to 23.96 days, indicating a more efficient payment cycle.
The reduction in the number of days of payables from 2022 to 2023 may suggest that Watsco Inc. is managing its payables more effectively, possibly negotiating more favorable credit terms or improving its cash flow management. However, further analysis and comparison with industry benchmarks are needed to gain a better understanding of the company's payables management efficiency.