Autoliv Inc (ALV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,353,000 | 8,838,000 | 8,201,000 | 7,352,100 | 8,465,200 |
| Receivables | US$ in thousands | 2,258,000 | 1,962,000 | 1,745,000 | 1,819,600 | 1,623,900 |
| Receivables turnover | 4.59 | 4.50 | 4.70 | 4.04 | 5.21 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,353,000K ÷ $2,258,000K
= 4.59
The receivables turnover ratio for Autoliv Inc. has fluctuated over the past five years. In 2023, the receivables turnover ratio was 4.64, compared to 4.51 in 2022 and 4.72 in 2021. This indicates that, on average, the company collected its accounts receivable approximately 4.64 times throughout the year in 2023.
The fluctuations in the receivables turnover ratio suggest a varying trend in the efficiency of Autoliv Inc.'s accounts receivable management. A higher receivables turnover ratio signifies a more efficient collection process, as the company is able to collect its outstanding receivables more quickly.
In 2020, the receivables turnover ratio was 3.99, lower than the ratios of the surrounding years. This could indicate potential difficulties in collecting receivables during that period. However, in 2019, the ratio improved to 5.17, indicating a more efficient collection process compared to the subsequent years.
Overall, the analysis of Autoliv Inc.'s receivables turnover ratio suggests that the company has experienced fluctuations in its accounts receivable management efficiency over the past five years. Monitoring and improving this ratio can help the company ensure timely collection of outstanding receivables and optimize its cash flow management.
Peer comparison
Dec 31, 2023