Advanced Energy Industries Inc (AEIS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,638,800 | 1,842,780 | 1,450,490 | 1,409,450 | 801,389 |
| Receivables | US$ in thousands | 282,430 | 300,683 | 10,768 | 4,804 | -3,500 |
| Receivables turnover | 5.80 | 6.13 | 134.70 | 293.39 | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,638,800K ÷ $282,430K
= 5.80
The receivables turnover ratio for Advanced Energy Industries Inc. has been relatively stable over the past five years, ranging from 3.15 to 6.14. The ratio indicates the number of times a company collects its accounts receivable during a specific period, reflecting the efficiency of its credit and collection policies.
In 2023, the receivables turnover ratio decreased slightly to 5.86 from 6.14 in 2022, suggesting that the company took slightly longer to collect its receivables during the year. However, the ratio remained at a healthy level, indicating that Advanced Energy Industries Inc. efficiently managed its accounts receivable in 2023.
Comparing the 2023 ratio to 2019 and 2020, we observe a substantial improvement in the efficiency of receivables collection, as the company has more than doubled its turnover since then. This indicates that Advanced Energy Industries Inc. has become more effective in collecting payments from its customers over the years.
Overall, the trend in Advanced Energy Industries Inc.'s receivables turnover ratio demonstrates sound management of accounts receivable and suggests that the company has been successful in converting credit sales into cash, maintaining a relatively stable and efficient collection process over the years.
Peer comparison
Dec 31, 2023