Avient Corp (AVNT)

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	3,025,600	3,616,800	3,679,400	4,170,600	4,630,600	4,533,100	4,947,900	4,877,400	4,743,500	4,556,500	4,250,500	3,627,700	3,186,800	2,848,400	2,643,400	2,938,100	3,120,000	3,295,400	3,473,000	3,484,000
Receivables	US$ in thousands	399,900	436,900	506,400	484,400	440,600	504,600	752,600	757,900	642,300	703,000	705,200	642,200	516,600	514,300	310,600	382,400	330,000	368,700	473,800	480,200
Receivables turnover		7.57	8.28	7.27	8.61	10.51	8.98	6.57	6.44	7.39	6.48	6.03	5.65	6.17	5.54	8.51	7.68	9.45	8.94	7.33	7.26

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,025,600K ÷ $399,900K
= 7.57

The receivables turnover ratio measures how effectively a company is able to collect payments from its customers. A higher ratio indicates that the company is collecting receivables more efficiently.

Analyzing Avient Corp's receivables turnover ratio over the past eight quarters shows some fluctuations. In Q4 2023, the receivables turnover ratio was 7.86, which was an increase from the previous quarter's ratio of 5.50 in Q3 2023. This indicates that in Q4 2023, Avient Corp was able to collect receivables more quickly compared to the previous quarter.

Looking further back, the highest receivables turnover ratio was observed in Q3 2022 at 9.16, while the lowest ratio was in Q2 2023 at 4.88. Despite these fluctuations, Avient Corp generally maintained a receivables turnover ratio above 5.00, indicating a relatively effective collection of receivables throughout the analyzed period.

Overall, Avient Corp's receivables turnover ratio has shown variability over the quarters, suggesting fluctuations in the company's ability to collect payments from customers efficiently. It is important for the company to monitor this ratio consistently and implement strategies to ensure timely collection of receivables to maintain healthy cash flows and working capital management.