Payable Days

Explanation: Payable Days, also known as accounts payable days or trade payable days, represent the average number of days a company takes to pay its suppliers or creditors for goods and services purchased on credit. It measures the efficiency of a company’s accounts payable management and its ability to manage its working capital effectively. High payable days may indicate higher negotiation power with suppliers, as longer payment terms provide the company with more time to use cash for other investments or operations, potentially improving cash flow and profitability.

Example: Maruti Suzuki has Payable Days of 45.60 in FY23, indicating that, on average, the company takes approximately 45.60 days to pay its suppliers or creditors. Analysing this metric helps stakeholders understand Maruti Suzuki’s payment practices and working capital management efficiency.

You can view Payable Days for any company on Radar under Cash Conversion Cycle in the Ratios section.