Archrock Inc (AROC)

Receivables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 1,142,169 1,036,877 972,925 921,312 884,635 850,029 813,492 785,951 753,160 724,464 705,631 683,916 685,067 688,377 699,129 720,039 768,969 841,112 878,250 896,466
Receivables US$ in thousands 132,478 149,019 115,351 105,295 124,069 129,306 120,676 110,994 137,544 127,334 129,323 115,162 104,931 108,936 106,393 107,535 104,425 113,607 124,587 138,623
Receivables turnover 8.62 6.96 8.43 8.75 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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,142,169K ÷ $132,478K
= 8.62

The receivables turnover of Archrock Inc has fluctuated over the given period. The metric indicates how efficiently the company is collecting its accounts receivable during each period. A higher turnover implies quicker collection and better management of credit sales.

From March 31, 2020, to March 31, 2021, the turnover improved steadily from 6.47 to 6.70, indicating a more efficient collection process. However, from June 30, 2021, to September 30, 2022, there was a gradual decline in turnover, reaching a low of 5.46 on June 30, 2022. This decline suggests a potential slowdown in collections or an increase in outstanding receivables.

The turnover improved on March 31, 2023, reaching 7.08, and continued to fluctuate until reaching a high of 8.75 on March 31, 2024. This significant increase indicates a considerable improvement in the company's ability to collect receivables promptly.

Overall, the trend in the receivables turnover suggests periods of both improvement and decline in the efficiency of Archrock Inc's accounts receivable collection process. Monitoring this ratio is essential for assessing the company's liquidity and effectiveness in managing credit sales.