Stretching payables raises operating-cash-flow in the period the stretch happens, then stops helping once the new terms are the norm. That is why a one-off jump in payables deserves scepticism when a company celebrates a strong cash quarter.
Some firms run supply chain finance programmes where a bank pays the supplier early and the company pays the bank later. The obligation looks like a payable rather than total-debt, which understates leverage.
Example: Northwind Tools owes suppliers $148M against $470M of COGS, about 115 days. Two years ago it was 78 days, and the change alone released roughly $48M of cash that will not repeat.
Related: days-payable-outstanding, operating-cash-flow, working-capital, current-liabilities, off-balance-sheet