Zimmer Biomet Holdings Inc (ZBH)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		31.44	14.31	16.95	22.12	21.16
Number of days of payables	days	11.61	25.51	21.54	16.50	17.25

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 31.44
= 11.61

Analyzing the number of days of payables for Zimmer Biomet Holdings Inc over the years reveals a fluctuating trend. The company's days of payables decreased from 17.25 days as of December 31, 2020, to 16.50 days by December 31, 2021. However, there was an increase in days of payables to 21.54 days on December 31, 2022, and a further increase to 25.51 days by December 31, 2023.

This increasing trend indicates that the company is taking longer to pay its creditors, which could be a strategy to manage cash flow more efficiently or negotiate better payment terms. Notably, as of December 31, 2024, the days of payables decreased significantly to 11.61 days, reflecting a potential improvement in the company's ability to settle its payables more promptly.

Overall, monitoring the days of payables can provide insights into Zimmer Biomet's liquidity management and supplier relationships. A decreasing trend may signify improved cash flow management, while an increasing trend could indicate potential liquidity challenges or changes in payment policies.