Watsco Inc (WSO)

Number of days of payables

		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	Mar 31, 2019
Payables turnover		14.33	10.31	8.59	8.89	11.50	10.96	8.01	10.47	12.67	9.65	8.65	10.19	15.23	10.69	9.72	11.80	15.08	11.38	9.72	12.30
Number of days of payables	days	25.48	35.41	42.49	41.06	31.75	33.31	45.59	34.85	28.82	37.83	42.18	35.83	23.96	34.13	37.55	30.93	24.21	32.07	37.56	29.67

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 some fluctuations over the past eight quarters. In Q4 2023, the number of days of payables was 25.48 days, indicating that, on average, the company takes approximately 25.48 days to pay its suppliers or vendors. This represents a significant improvement compared to the previous quarter, Q3 2023, where the number of days of payables was 35.41 days.

Looking at the trend over the past two years, there have been notable peaks and troughs in the number of days of payables. The highest number of days of payables was observed in Q2 2022, with 45.59 days, while the lowest was in Q4 2022, with 31.75 days. This suggests that Watsco Inc. has managed its payables more efficiently in some quarters compared to others.

Overall, a lower number of days of payables indicates that the company is paying its suppliers more quickly. This could be beneficial in enhancing relationships with suppliers and taking advantage of any prompt payment discounts that may be available. However, it is essential for the company to strike a balance to ensure that it does not compromise its own liquidity position.