The Andersons Inc (ANDE)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,750,110 | 16,214,600 | 16,798,230 | 17,228,670 | 17,325,380 | 16,430,590 | 15,210,090 | 13,995,270 | 12,612,040 | 11,337,640 | 10,224,410 | 8,843,350 | 8,064,620 | 7,441,920 | 7,539,090 | 8,009,390 | 8,170,190 | 7,097,252 | 5,800,071 | 4,386,433 |
| Receivables | US$ in thousands | 762,549 | 816,686 | 1,030,270 | 1,135,420 | 1,261,150 | 1,002,550 | 1,158,730 | 1,068,800 | 845,164 | 748,872 | 733,410 | 711,569 | 665,457 | 536,768 | 544,343 | 546,257 | 546,970 | 546,504 | 731,809 | 631,424 |
| Receivables turnover | 19.34 | 19.85 | 16.30 | 15.17 | 13.74 | 16.39 | 13.13 | 13.09 | 14.92 | 15.14 | 13.94 | 12.43 | 12.12 | 13.86 | 13.85 | 14.66 | 14.94 | 12.99 | 7.93 | 6.95 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,750,110K ÷ $762,549K
= 19.34
Andersons Inc.'s receivables turnover has shown fluctuating trends over the past eight quarters. The receivables turnover ratio measures how efficiently the company manages its accounts receivable by assessing how many times a year the company collects its average accounts receivable balance.
In Q4 2023, the receivables turnover ratio was 19.34, indicating that the company collected its accounts receivable approximately 19.34 times throughout the year. This represents a slight decrease from the previous quarter's ratio of 19.85. The reduction in receivables turnover could suggest that it took slightly longer for Andersons Inc. to collect payments from its customers in Q4 2023 compared to Q3 2023.
Looking further back, the trend in receivables turnover has been generally increasing since Q1 2022, where it stood at 13.29. This suggests that Andersons Inc. has been improving its efficiency in collecting receivables over the past two years. The ratio peaked in Q3 2023 at 19.85, showing a significant improvement in collections efficiency. However, the ratio dipped slightly in Q4 2023, which may warrant further investigation into the company's credit policies, customer payment behaviors, or changes in sales volume.
Overall, while Andersons Inc. has shown improvements in its receivables turnover ratio over the past few quarters, the recent slight decrease in Q4 2023 may indicate a need for the company to continue monitoring its accounts receivable management to ensure optimal efficiency in collecting payments from customers.
Peer comparison
Dec 31, 2023