Archrock Inc (AROC)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,172,300 | 889,048 | 784,803 | 703,584 | 775,926 |
| Receivables | US$ in thousands | 132,478 | 124,069 | 137,544 | 104,931 | 104,425 |
| Receivables turnover | 8.85 | 7.17 | 5.71 | 6.71 | 7.43 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,172,300K ÷ $132,478K
= 8.85
To analyze Archrock Inc's receivables turnover, we observe a general declining trend from 2020 to 2022, as the ratio dropped from 7.43 to 5.71. This indicates that the company took longer to collect its accounts receivable during this period. However, there was a notable improvement in 2023 and a substantial increase in 2024, reaching 8.85, suggesting that Archrock Inc was able to collect its outstanding receivables more efficiently in these later years. Overall, the fluctuating trend in receivables turnover ratios signals potential changes in the company's credit policies, collection efforts, or changes in customer payment behaviors that should be further investigated to understand their impact on the company's financial performance.
Peer comparison
Dec 31, 2024