Allegheny Technologies Incorporated (ATI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,050,200 | 3,594,600 | 2,646,300 | 2,858,800 | 4,079,500 |
| Receivables | US$ in thousands | 625,000 | 579,200 | 470,000 | 345,800 | 554,100 |
| Receivables turnover | 6.48 | 6.21 | 5.63 | 8.27 | 7.36 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,050,200K ÷ $625,000K
= 6.48
ATI Inc's receivables turnover has shown a fluctuating trend over the past five years. The receivables turnover ratio measures the company's efficiency in collecting on credit sales. A higher turnover ratio indicates a more efficient collection process.
In 2023, the receivables turnover ratio increased slightly compared to the prior year, reaching 6.68. This suggests that ATI Inc was able to collect its accounts receivable more frequently during the year, indicating improved efficiency in managing credit sales.
However, in 2022, the turnover ratio remained relatively flat at 6.62, indicating consistent performance in collecting receivables compared to the previous year.
In 2021, the ratio decreased to 5.96, which may suggest a slower collection of receivables compared to the previous year. This could be a potential area of concern for ATI Inc as it may indicate credit collection inefficiencies during that period.
On the other hand, in 2020, the company experienced a significant increase in receivables turnover to 8.62, indicating a much more efficient collection process compared to the prior year. This could be attributed to improvements in credit management practices or a change in customer payment behavior.
Similarly, in 2019, the company reported a receivables turnover of 7.44, indicating a fairly efficient collection process during that year.
Overall, the fluctuation in ATI Inc's receivables turnover ratio over the past five years suggests varying levels of effectiveness in collecting accounts receivable. Further analysis of the company's credit policies, customer base, and industry trends may provide insights into the factors driving these fluctuations.