Avantor Inc (AVTR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,967,200 | 7,512,400 | 7,386,100 | 6,393,600 | 6,040,300 |
| Receivables | US$ in thousands | 1,150,200 | 1,218,400 | 1,222,100 | 1,113,300 | 988,800 |
| Receivables turnover | 6.06 | 6.17 | 6.04 | 5.74 | 6.11 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,967,200K ÷ $1,150,200K
= 6.06
The receivables turnover ratio for Avantor Inc has been relatively stable over the past five years, ranging from 5.74 to 6.17. This ratio indicates how efficiently the company is able to collect outstanding receivables from customers during a given period.
A higher turnover ratio suggests that the company is more effective in collecting payments from customers, while a lower ratio may indicate potential issues with collecting receivables in a timely manner. In this case, Avantor Inc's receivables turnover has been consistently above 6, which is a positive sign of the company's ability to efficiently manage its accounts receivable.
Overall, the trend in Avantor Inc's receivables turnover ratio demonstrates a consistent and effective collection of receivables over the past five years, reflecting sound financial management practices within the company.
Peer comparison
Dec 31, 2023