Essential Utilities Inc (WTRG)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.66 | 0.09 | 0.10 | 0.09 | 4.45 | |
| Number of days of payables | days | 219.86 | 4,006.70 | 3,598.56 | 4,194.46 | 82.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.66
= 219.86
The number of days of payables for Essential Utilities Inc has fluctuated over the past five years. In 2023, the company took approximately 229.16 days to pay its suppliers, which indicates a significant increase from the previous year. This suggests that the company is taking longer to settle its payables, potentially indicating liquidity challenges or stretched payment terms with suppliers.
In 2022, Essential Utilities Inc had a lower number of days of payables at 144.81 days, reflecting a more efficient management of its trade credit obligations. However, in 2021, the number of days of payables increased to 206.96 days, indicating a reversal in the trend of improving efficiency in managing payables.
The absence of data for 2020 and 2019 limits a comprehensive trend analysis, but the available data suggests that Essential Utilities Inc may benefit from reviewing its payables management processes and relationships with suppliers to optimize its cash flow and working capital efficiency in the future.
Peer comparison
Dec 31, 2023