AdvanSix Inc (ASIX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,524,830 | 1,942,860 | 1,679,600 | 1,150,210 | 1,290,570 |
| Receivables | US$ in thousands | 166,827 | 185,200 | 179,087 | 135,843 | 106,660 |
| Receivables turnover | 9.14 | 10.49 | 9.38 | 8.47 | 12.10 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,524,830K ÷ $166,827K
= 9.14
The receivables turnover ratio for AdvanSix Inc has shown some fluctuations over the past five years. In 2023, the receivables turnover ratio decreased to 9.19 from its previous year's value of 10.51 in 2022. This indicates that the company took longer to collect its accounts receivable in 2023 compared to the previous year. However, the turnover ratio in 2023 was still higher than the values reported in 2021 (9.41) and 2020 (8.52).
The highest receivables turnover ratio was observed in 2019 at 12.16, suggesting that the company was more efficient in collecting its receivables during that year. Overall, a higher receivables turnover ratio is generally considered favorable as it indicates that the company is able to collect its outstanding receivables more quickly.
It is important for AdvanSix Inc to closely monitor its receivables turnover ratio to ensure efficient management of its accounts receivable, timely collections, and effective credit policies to maintain healthy cash flows and liquidity.
Peer comparison
Dec 31, 2023