Alcoa Corp (AA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Receivables | US$ in thousands | 808,000 | 909,000 | 884,000 | 556,000 | 660,000 |
| Receivables turnover | 12.99 | 13.56 | 13.47 | 16.40 | 15.60 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,494,000K ÷ $808,000K
= 12.99
The receivables turnover ratio for Alcoa Corp has exhibited a declining trend over the last five years, decreasing from 15.81 in 2019 to 13.06 in 2023. This indicates that the company's ability to efficiently collect outstanding receivables from customers has weakened. A lower receivables turnover ratio may suggest a longer collection period or potential issues with accounts receivable management.
It is important for Alcoa Corp to closely monitor this ratio and take necessary steps to improve its collection processes in order to enhance liquidity and overall financial performance. A higher receivables turnover ratio would indicate that the company is collecting receivables more quickly, which is generally seen as a positive indicator of financial health and efficiency.
Peer comparison
Dec 31, 2023