Increase Decrease In Payables (Historical)
Returns the increase or decrease in accounts payable for a company from its cash flow statement. This represents the change in amounts owed to suppliers and vendors.
Understanding the Metric
Accounts payable changes affect operating cash flow:
- Positive value indicates an increase in payables (cash inflow - company is delaying payments)
- Negative value indicates a decrease in payables (cash outflow - company is paying down debt to suppliers)
Parameters
| Parameter | Description |
|---|---|
| Symbol | Stock ticker (e.g., AAPL, MSFT) |
| Year | Fiscal year or period code (lq, ly, lq-1, ly-1, lt, lt-1) |
| Quarter | Optional: 1, 2, 3, or 4 (default: 1) |
| TTM | Optional: "TTM" for trailing twelve months |
Period Codes
| Code | Meaning |
|---|---|
| lq | Last reported quarter |
| lq-1 | Quarter before last |
| ly | Last fiscal year |
| ly-1 | Year before last |
| lt | Last trailing twelve months |
| lt-1 | Prior trailing twelve months |
Examples
=hf_Increase_Decrease_in_payables("AAPL", 2023, 4)=hf_Increase_Decrease_in_payables("MSFT", "ly")=hf_Increase_Decrease_in_payables("GOOGL", 2023, , "TTM")=hf_Increase_Decrease_in_payables(A1, B1, C1)=hf_Increase_Decrease_in_payables("AMZN", "lq")When to Use
- Analyzing working capital efficiency
- Understanding cash conversion cycle
- Evaluating supplier payment practices
- Cash flow forecasting and analysis
- Comparing working capital management across competitors
When NOT to Use
Common Issues & FAQ
Q: Why is a positive payables change good for cash flow? A: When payables increase, the company is effectively borrowing from suppliers interest-free, which preserves cash. This shows up as a positive adjustment to operating cash flow.
Q: What causes large swings in payables? A: Seasonal purchasing patterns, changes in payment terms with suppliers, or shifts in business strategy (e.g., just-in-time inventory) can cause significant payables fluctuations.
Q: How does this relate to days payable outstanding (DPO)? A: This shows the cash flow impact, while DPO measures how long it takes to pay suppliers. They're related but measure different aspects of payables management.
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