CompanyGraph
Tracks period-over-period shifts in unpaid supplier obligations, exposing whether the company is accelerating or decelerating its use of vendor financing.
Change in accounts payable shows how much the company's unpaid bills to suppliers have increased or decreased. Rising payables usually mean the company has delayed payments and kept more cash; falling payables mean it has paid out more cash.
Change in accounts payable shows how much the company's unpaid bills to suppliers have increased or decreased. Rising payables usually mean the company has delayed payments and kept more cash; falling payables mean it has paid out more cash.
How it affects cash flow:
- Increase in payables: Added to operating cash flow (expenses incurred but cash not yet paid)
- Decrease in payables: Subtracted from operating cash flow (paid down supplier obligations)
Interpreting payables changes:
- Growing faster than costs: Company is stretching payment terms, conserving cash
- Growing with costs: Normal pattern for stable operations
- Declining payables: May indicate cash constraints or supplier pressure
Important considerations:
- Supplier relationships: Excessively stretching payments can damage supplier relationships
- Working capital management: Payables are a source of interest-free financing
- Industry norms: Payment terms vary significantly by industry
- Seasonal patterns: Payables may fluctuate with business cycles
Days payable outstanding (DPO) measures how long the company takes to pay suppliers. Compare to industry peers and historical trends.
Where it fits
Accounts PayableAccounts payable is the amount the company owes suppliers for goods and services already received. It represents short-term bills that still need to be paid.→Change in Accounts Payable (CF)