Watts Water Technologies Inc (WTS)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 13.06 | 12.51 | 11.05 | 12.19 | 11.52 | |
| Number of days of payables | days | 27.95 | 29.17 | 33.03 | 29.94 | 31.69 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 13.06
= 27.95
Watts Water Technologies, Inc.'s number of days of payables, which represents the number of days a company takes to pay its suppliers, has shown fluctuation over the past five years. In 2023, the number of days of payables was 43.92 days, showing a slight improvement from the previous year's 44.35 days. Comparing to 2021 where it was 50.23 days, the current year's performance is more efficient in managing its payables.
The trend in the number of days of payables indicates that the company has been able to maintain a good balance in managing its payables over the years. A lower number of days of payables may suggest that the company is able to negotiate better payment terms with its suppliers, which could improve cash flow management. On the other hand, an excessively low number of days of payables may raise concerns about the company's liquidity or its relationships with suppliers.
It will be essential for stakeholders to track this metric over time to ensure that the company continues to effectively manage its payables while maintaining strong supplier relationships and financial health. Analyzing the factors influencing this ratio can provide valuable insights into the company's operational efficiency and financial management practices.
Peer comparison
Dec 31, 2023