Albemarle Corp (ALB)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,617,200 | 7,320,100 | 3,327,960 | 3,128,910 | 3,589,430 |
| Receivables | US$ in thousands | 2,309,490 | 1,590,440 | 735,816 | 683,136 | 804,507 |
| Receivables turnover | 4.16 | 4.60 | 4.52 | 4.58 | 4.46 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,617,200K ÷ $2,309,490K
= 4.16
Albemarle Corp.'s receivables turnover has shown a generally positive trend over the past five years. The ratio has increased from 4.77 in 2019 to 5.24 in 2023, indicating that the company's ability to collect receivables has improved. This signifies that Albemarle has been more efficient in converting its accounts receivable into cash during each year.
A higher receivables turnover ratio suggests that the company is collecting outstanding receivables more frequently or quickly, which is favorable for liquidity and cash flow management. It also indicates that Albemarle is effectively managing its credit policies and monitoring customer payments.
Overall, the increasing trend in receivables turnover for Albemarle Corp. reflects positively on the company's efficiency in managing its accounts receivable and converting them into cash, potentially enhancing its liquidity position and financial performance.
Peer comparison
Dec 31, 2023