Zimmer Biomet Holdings Inc (ZBH)

Number of days of payables

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Payables turnover 31.44 18.67 17.44 15.97 14.31 19.23 17.15 15.20 16.95 18.46 20.93 20.66 22.12 20.39 18.44 19.25 21.16 19.30 17.79 16.88
Number of days of payables days 11.61 19.55 20.93 22.85 25.51 18.99 21.28 24.02 21.54 19.77 17.44 17.66 16.50 17.90 19.79 18.96 17.25 18.91 20.52 21.63

December 31, 2024 calculation

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

The number of days of payables, also known as the accounts payable turnover, measures how long, on average, a company takes to pay its suppliers or vendors for goods and services purchased on credit. For Zimmer Biomet Holdings Inc, there has been a fluctuation in the number of days of payables over the past few years.

From March 31, 2020, to December 31, 2024, the number of days of payables ranged from a low of 11.61 days to a high of 24.02 days. A decreasing trend is observed from March 31, 2020, at 21.63 days to December 31, 2024, at 11.61 days, indicating a more efficient management of accounts payable during this period. However, there are some fluctuations in between, with occasional increases and decreases, suggesting possible changes in the company's payment policies or vendor relationships.

It is important to note that a lower number of days of payables generally indicates that the company is paying its suppliers more quickly, which could suggest strong liquidity or good bargaining power with suppliers. On the other hand, a higher number of days of payables may imply potential cash flow issues or strained vendor relations.

Analyzing the number of days of payables alongside other financial ratios and factors can provide a more holistic view of Zimmer Biomet Holdings Inc's financial health and operational efficiency in managing its working capital and supplier obligations.