Api Group Corp (APG)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,018,000 | 6,928,000 | 6,558,000 | 3,940,000 | 3,587,000 |
| Receivables | US$ in thousands | 1,897,000 | 1,831,000 | 1,772,000 | 984,000 | 781,000 |
| Receivables turnover | 3.70 | 3.78 | 3.70 | 4.00 | 4.59 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,018,000K ÷ $1,897,000K
= 3.70
The receivables turnover ratio for Api Group Corp has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 4.59, indicating that the company collected its average accounts receivable approximately 4.59 times during that year. This relatively high figure suggests a strong efficiency in the collection process at that time.
In 2021, the receivables turnover declined to 4.00, reflecting a slight decrease in collection efficiency. The decline was more pronounced in 2022, when the ratio further decreased to 3.70. This downward trend indicates that the company was collecting its receivables less frequently during this period, resulting in longer collection cycles or potential issues with receivables management.
In 2023, there was a modest increase back to 3.78, suggesting a marginal improvement in collection efficiency compared to the previous year. However, the ratio remained below the 2020 level, indicating ongoing challenges in receivables management or alterations in credit policies or customer payment behaviors.
By the end of 2024, the ratio reverted to 3.70, consistent with the 2022 figure. This indicates stability in the collections process compared to 2022 but still reflects a lower turnover rate than at the beginning of the observed period.
Overall, the trend reveals a decrease in receivables turnover from 2020 to 2022, followed by a slight recovery in 2023, with the ratio remaining relatively stable into 2024. This pattern suggests periodical challenges or strategic adjustments in managing accounts receivable, impacting the company's collection efficiency over the analyzed period.
Peer comparison
Dec 31, 2024