Archrock Inc (AROC)
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 | 884,635 | 850,029 | 813,492 | 785,951 | 753,160 | 724,464 | 705,631 | 683,916 | 685,067 | 688,377 | 699,129 | 720,039 | 768,969 | 841,112 | 878,250 | 896,466 | 884,844 | 872,016 | 863,322 | 858,072 |
| Receivables | US$ in thousands | 124,069 | 129,306 | 120,676 | 110,994 | 137,544 | 127,334 | 129,323 | 115,162 | 104,931 | 108,936 | 106,393 | 107,535 | 104,425 | 113,607 | 124,587 | 138,623 | 144,865 | 157,342 | 146,831 | 145,294 |
| Receivables turnover | 7.13 | 6.57 | 6.74 | 7.08 | 5.48 | 5.69 | 5.46 | 5.94 | 6.53 | 6.32 | 6.57 | 6.70 | 7.36 | 7.40 | 7.05 | 6.47 | 6.11 | 5.54 | 5.88 | 5.91 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $884,635K ÷ $124,069K
= 7.13
The receivables turnover ratio for Archrock Inc has been relatively consistent over the past eight quarters, ranging from 6.15 to 7.98. This ratio measures the company's efficiency in collecting outstanding receivables from its customers during a specific period.
A higher receivables turnover ratio indicates that the company is able to convert its accounts receivable into cash more quickly, which is generally a positive sign of efficient operations and effective credit management. In this case, Archrock Inc has shown consistent performance in this aspect, with a slight uptrend in the ratio in the most recent quarter.
Overall, the trend in Archrock Inc's receivables turnover ratio suggests that the company has been effectively managing its accounts receivable and collecting payments from customers in a timely manner. However, it's essential to compare this ratio with industry benchmarks and company-specific trends to gain a more comprehensive understanding of its financial performance.
Peer comparison
Dec 31, 2023