APA Corporation (APA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,279,000 | 1,874,000 | 7,985,000 | 4,308,000 | 6,553,000 |
| Receivables | US$ in thousands | -114,000 | 1,424,000 | 1,467,000 | 908,000 | 1,062,000 |
| Receivables turnover | — | 1.32 | 5.44 | 4.74 | 6.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,279,000K ÷ $-114,000K
= —
APA Corporation's receivables turnover ratio has fluctuated over the past five years, ranging from a low of 4.95 in 2020 to a high of 7.66 in 2022. The receivables turnover ratio measures how efficiently the company is able to collect outstanding receivables from customers during a specific period. A higher turnover ratio indicates that the company is collecting its accounts receivable more frequently, which is generally seen as a positive sign of efficient operations.
In 2023, the receivables turnover ratio decreased to 5.15 from the previous year. This decline could indicate either a decrease in sales or a decrease in the efficiency of collecting outstanding receivables. Further analysis would be required to determine the specific factors contributing to this change.
Overall, APA Corporation's receivables turnover ratios suggest that the company has managed its accounts receivable effectively over the years, with fluctuations reflecting changes in business operations or collection efficiency. It is essential for the company to continue monitoring this ratio to ensure the timely collection of outstanding receivables and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023