Stock Analysis on Net

Anthem Inc. (NYSE:ANTM)

Analysis of Short-term (Operating) Activity Ratios 
Quarterly Data

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Anthem Inc., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Turnover Ratios
Receivables turnover 16.67 20.66 18.93 18.81 17.39 19.72 18.91 18.04 16.74 18.20 19.23 18.86 17.30 19.13 19.64 19.69 13.36 13.52
Payables turnover 7.28 7.59 7.31 7.30 7.31 7.75 8.32 8.42 8.48 9.25 8.84 8.77 8.99 9.65 9.35 9.48 9.39 9.04
Working capital turnover 8.65 7.23 6.79 6.67 5.38 6.39 5.98 5.40 6.81 6.11 5.65 6.09 6.27 6.91 6.55 6.53 6.84 6.48
Average No. Days
Average receivable collection period 22 18 19 19 21 19 19 20 22 20 19 19 21 19 19 19 27 27
Average payables payment period 50 48 50 50 50 47 44 43 43 39 41 42 41 38 39 38 39 40

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Anthem Inc. receivables turnover ratio improved from Q3 2021 to Q4 2021 but then deteriorated significantly from Q4 2021 to Q1 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Anthem Inc. payables turnover ratio increased from Q3 2021 to Q4 2021 but then decreased significantly from Q4 2021 to Q1 2022.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Anthem Inc. working capital turnover ratio improved from Q3 2021 to Q4 2021 and from Q4 2021 to Q1 2022.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Anthem Inc. number of days of receivables outstanding improved from Q3 2021 to Q4 2021 but then deteriorated significantly from Q4 2021 to Q1 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Receivables Turnover

Anthem Inc., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Premiums 32,785  30,769  30,395  28,533  27,676  27,108  26,392  25,092  25,517  24,036  23,793  23,501  22,843  21,819  21,451  21,248  20,903  21,086  20,797  20,813  20,951 
Premium receivables 7,349  5,681  6,008  5,834  6,111  5,279  5,343  5,456  5,786  5,173  4,782  4,751  5,049  4,465  4,312  4,268  6,256  6,185  5,692  6,106  5,773 
Short-term Activity Ratio
Receivables turnover1 16.67 20.66 18.93 18.81 17.39 19.72 18.91 18.04 16.74 18.20 19.23 18.86 17.30 19.13 19.64 19.69 13.36 13.52
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 6.20 6.64 6.61 6.58 6.13 5.40 5.70 6.12 6.06 5.88 5.75 5.58 5.75 5.90 5.77 5.70 5.31 5.22
CVS Health Corp. 11.30 11.91 11.23 11.48 11.32 12.32 11.14 11.68 11.33 13.04 12.30 12.44 10.74 11.00 12.67 13.21 13.32 14.02
Danaher Corp. 6.87 6.36 6.69 6.51 6.28 5.51 5.83 5.59 5.25 5.61 5.31 5.42 5.70 5.70 5.90 5.85 5.75 5.20
HCA Healthcare Inc. 7.01 7.26 6.88 7.34 7.09 7.31 7.89 8.17 7.50 6.96 7.02 6.77 6.44 6.88 7.04 6.86 7.01 6.71
Intuitive Surgical Inc. 6.52 7.30 7.90 7.38 6.96 6.75 7.32 8.56 8.73 6.94 6.65 6.38 7.03 5.46 6.15 6.49 6.95 6.11
Medtronic PLC 5.82 5.51 5.35 5.21 5.73 6.22 4.97 5.05 5.20 4.91 5.22 5.29 5.28 5.00 5.15 5.15 5.18 5.31 5.38 5.12 5.36
Stryker Corp. 5.83 5.66 5.92 5.99 5.63 5.31 5.86 6.39 5.65 5.14 5.97 5.90 6.08 5.83 6.39 6.24 6.04 5.66
UnitedHealth Group Inc. 12.44 15.91 15.49 14.61 12.91 15.65 16.31 15.55 13.20 16.05 17.06 18.91 14.15 15.64 15.79 15.49 14.21 16.56

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q1 2022 Calculation
Receivables turnover = (PremiumsQ1 2022 + PremiumsQ4 2021 + PremiumsQ3 2021 + PremiumsQ2 2021) ÷ Premium receivables
= (32,785 + 30,769 + 30,395 + 28,533) ÷ 7,349 = 16.67

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Anthem Inc. receivables turnover ratio improved from Q3 2021 to Q4 2021 but then deteriorated significantly from Q4 2021 to Q1 2022.

Payables Turnover

Anthem Inc., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Benefit expense 28,215  27,538  26,645  24,763  23,699  24,088  22,921  19,547  21,489  21,383  20,753  20,368  19,282  18,936  18,185  17,728  17,046  18,673  18,104  17,917  17,543 
Medical claims payable 14,713  13,518  13,562  13,076  12,347  11,359  10,252  9,878  9,902  8,842  8,977  8,758  8,242  7,454  7,658  7,545  7,640  7,992  7,964  7,970  7,921 
Short-term Activity Ratio
Payables turnover1 7.28 7.59 7.31 7.30 7.31 7.75 8.32 8.42 8.48 9.25 8.84 8.77 8.99 9.65 9.35 9.48 9.39 9.04
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 4.02 4.21 4.55 4.43 3.97 3.80 4.37 4.00 4.20 4.07 4.29 3.97 4.20 4.27 4.68 4.98 4.99 5.14
Bristol-Myers Squibb Co. 3.25 3.37 3.89 2.97 3.69 4.34 4.65 3.73 3.23 3.30 3.85 3.56 3.43 3.46 3.68 3.45 3.70 2.70
CVS Health Corp. 19.38 19.14 18.49 20.72 20.50 19.72 18.61 21.70 21.06 20.13 21.27 20.47 21.10 18.27 18.01 18.42 20.30 17.63
Danaher Corp. 5.04 4.48 5.20 5.54 5.29 4.79 5.46 5.28 4.55 5.23 5.08 5.05 5.13 5.13 5.49 5.33 5.27 5.39
HCA Healthcare Inc. 2.39 2.31 2.51 2.58 2.40 2.37 2.52 2.84 3.11 2.92 3.16 3.09 2.91 3.00 3.18 3.08 2.93 2.81
Intuitive Surgical Inc. 14.36 14.45 14.13 13.71 14.80 18.35 12.46 13.18 10.69 11.08 9.80 9.52 8.96 11.12 11.08 10.07 10.18 11.33
Medtronic PLC 5.67 4.98 5.56 5.19 5.56 4.72 4.96 4.84 4.89 4.69 5.31 5.16 4.98 5.56 5.03 5.34 5.33 5.37 5.92 5.48 5.54
Stryker Corp. 5.75 5.44 6.46 6.70 7.15 6.54 8.00 8.12 7.08 7.69 7.74 8.00 7.74 7.22 8.09 8.01 8.28 8.77
UnitedHealth Group Inc. 6.78 7.63 6.98 6.97 6.58 7.29 7.40 8.02 6.96 7.21 7.36 7.23 7.02 7.31 7.14 7.12 6.83 7.28

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q1 2022 Calculation
Payables turnover = (Benefit expenseQ1 2022 + Benefit expenseQ4 2021 + Benefit expenseQ3 2021 + Benefit expenseQ2 2021) ÷ Medical claims payable
= (28,215 + 27,538 + 26,645 + 24,763) ÷ 14,713 = 7.28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Anthem Inc. payables turnover ratio increased from Q3 2021 to Q4 2021 but then decreased significantly from Q4 2021 to Q1 2022.

Working Capital Turnover

Anthem Inc., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Current assets 53,897  51,122  51,904  50,238  54,495  45,751  45,450  46,764  41,256  39,033  39,504  37,805  36,611  34,321  37,108  37,370  36,974  36,263  36,974  37,131  37,982 
Less: Current liabilities 39,733  34,885  35,162  33,794  34,749  29,453  28,561  28,522  27,039  23,617  23,234  23,090  22,682  21,965  24,174  24,506  24,756  23,356  24,413  22,568  23,174 
Working capital 14,164  16,237  16,742  16,444  19,746  16,298  16,889  18,242  14,217  15,416  16,270  14,715  13,929  12,356  12,934  12,865  12,218  12,907  12,561  14,563  14,808 
 
Premiums 32,785  30,769  30,395  28,533  27,676  27,108  26,392  25,092  25,517  24,036  23,793  23,501  22,843  21,819  21,451  21,248  20,903  21,086  20,797  20,813  20,951 
Short-term Activity Ratio
Working capital turnover1 8.65 7.23 6.79 6.67 5.38 6.39 5.98 5.40 6.81 6.11 5.65 6.09 6.27 6.91 6.55 6.53 6.84 6.48
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 4.13 3.87 3.98 4.02 3.99 4.06 4.52 5.02 6.84 6.64 5.57 5.04 5.80 5.44 5.61 5.72 4.78 2.44
Bristol-Myers Squibb Co. 6.24 3.95 4.43 4.24 4.25 3.72 2.77 3.09 2.38 2.28 0.78 0.82 2.71 3.32 4.04 5.09 3.91 3.64
CVS Health Corp. 157.15 4.42 4.42 4.48 318.01
Danaher Corp. 5.91 8.40 7.98 3.12 3.45 3.48 3.14 2.80 6.74 0.87 1.28 2.86 3.56 8.83 8.29 8.36 7.15 8.91
HCA Healthcare Inc. 13.31 14.84 16.00 14.51 15.51 14.20 26.90 42.68 12.93 14.93 13.74 12.50 82.79 17.65 12.16 16.33 15.25 11.42
Intuitive Surgical Inc. 1.26 1.22 1.17 1.03 0.88 0.77 0.80 0.88 1.23 1.23 1.25 1.24 1.17 1.06 1.01 1.04 1.18 1.49
Medtronic PLC 2.15 2.15 2.02 2.00 2.44 2.48 2.03 2.13 2.16 2.26 2.54 2.30 2.24 2.32 1.90 2.02 3.11 2.79 3.01 2.24 1.84
Stryker Corp. 4.04 3.13 3.33 3.40 2.93 3.08 1.61 1.68 2.28 2.14 3.13 3.35 3.32 2.76 3.53 3.87 4.17 2.76
UnitedHealth Group Inc.

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q1 2022 Calculation
Working capital turnover = (PremiumsQ1 2022 + PremiumsQ4 2021 + PremiumsQ3 2021 + PremiumsQ2 2021) ÷ Working capital
= (32,785 + 30,769 + 30,395 + 28,533) ÷ 14,164 = 8.65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Anthem Inc. working capital turnover ratio improved from Q3 2021 to Q4 2021 and from Q4 2021 to Q1 2022.

Average Receivable Collection Period

Anthem Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data
Receivables turnover 16.67 20.66 18.93 18.81 17.39 19.72 18.91 18.04 16.74 18.20 19.23 18.86 17.30 19.13 19.64 19.69 13.36 13.52
Short-term Activity Ratio (no. days)
Average receivable collection period1 22 18 19 19 21 19 19 20 22 20 19 19 21 19 19 19 27 27
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 59 55 55 55 60 68 64 60 60 62 63 65 64 62 63 64 69 70
CVS Health Corp. 32 31 32 32 32 30 33 31 32 28 30 29 34 33 29 28 27 26
Danaher Corp. 53 57 55 56 58 66 63 65 69 65 69 67 64 64 62 62 63 70
HCA Healthcare Inc. 52 50 53 50 51 50 46 45 49 52 52 54 57 53 52 53 52 54
Intuitive Surgical Inc. 56 50 46 49 52 54 50 43 42 53 55 57 52 67 59 56 52 60
Medtronic PLC 63 66 68 70 64 59 73 72 70 74 70 69 69 73 71 71 71 69 68 71 68
Stryker Corp. 63 64 62 61 65 69 62 57 65 71 61 62 60 63 57 58 60 64
UnitedHealth Group Inc. 29 23 24 25 28 23 22 23 28 23 21 19 26 23 23 24 26 22

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 16.67 = 22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Anthem Inc. number of days of receivables outstanding improved from Q3 2021 to Q4 2021 but then deteriorated significantly from Q4 2021 to Q1 2022.

Average Payables Payment Period

Anthem Inc., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data
Payables turnover 7.28 7.59 7.31 7.30 7.31 7.75 8.32 8.42 8.48 9.25 8.84 8.77 8.99 9.65 9.35 9.48 9.39 9.04
Short-term Activity Ratio (no. days)
Average payables payment period1 50 48 50 50 50 47 44 43 43 39 41 42 41 38 39 38 39 40
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 91 87 80 82 92 96 83 91 87 90 85 92 87 85 78 73 73 71
Bristol-Myers Squibb Co. 112 108 94 123 99 84 78 98 113 110 95 103 106 105 99 106 99 135
CVS Health Corp. 19 19 20 18 18 19 20 17 17 18 17 18 17 20 20 20 18 21
Danaher Corp. 72 82 70 66 69 76 67 69 80 70 72 72 71 71 66 69 69 68
HCA Healthcare Inc. 153 158 145 142 152 154 145 128 117 125 115 118 125 122 115 119 125 130
Intuitive Surgical Inc. 25 25 26 27 25 20 29 28 34 33 37 38 41 33 33 36 36 32
Medtronic PLC 64 73 66 70 66 77 74 75 75 78 69 71 73 66 73 68 68 68 62 67 66
Stryker Corp. 63 67 57 54 51 56 46 45 52 47 47 46 47 51 45 46 44 42
UnitedHealth Group Inc. 54 48 52 52 56 50 49 46 52 51 50 50 52 50 51 51 53 50

Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.28 = 50

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.