Abbott Laboratories (ABT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 39,431,000 | 43,093,000 | 42,541,000 | 34,070,000 | 31,164,000 |
| Receivables | US$ in thousands | 6,565,000 | 6,218,000 | 6,487,000 | 6,414,000 | 5,425,000 |
| Receivables turnover | 6.01 | 6.93 | 6.56 | 5.31 | 5.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $39,431,000K ÷ $6,565,000K
= 6.01
The receivables turnover ratio for Abbott Laboratories has shown a fluctuating trend over the past five years. In 2023, the ratio stood at 6.11, compared to 7.02 in 2022, 6.64 in 2021, 5.40 in 2020, and 5.88 in 2019.
A higher receivables turnover ratio indicates that the company is able to collect its accounts receivables more quickly, which is generally seen as a positive sign of efficiency. In contrast, a lower ratio may indicate potential issues with collections and liquidity.
While Abbott's receivables turnover has varied, overall, the company has been maintaining a healthy turnover rate, demonstrating its ability to efficiently manage its accounts receivables and convert them into cash. It is essential for Abbott to continue monitoring and managing its receivables effectively to ensure optimal cash flow and financial performance.
Peer comparison
Dec 31, 2023