Avantor Inc (AVTR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,783,600 | 6,967,200 | 7,512,400 | 7,386,100 | 6,393,600 |
| Receivables | US$ in thousands | 1,034,500 | 1,150,200 | 1,218,400 | 1,222,100 | 1,113,300 |
| Receivables turnover | 6.56 | 6.06 | 6.17 | 6.04 | 5.74 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,783,600K ÷ $1,034,500K
= 6.56
The receivables turnover ratio of Avantor Inc has shown a consistent increase over the past five years, indicating the company's ability to efficiently collect outstanding receivables. Specifically, the ratio has improved from 5.74 in 2020 to 6.56 in 2024, showcasing a positive trend in managing the accounts receivable process.
A higher receivables turnover ratio suggests that Avantor Inc is quickly converting its credit sales into cash, which is a favorable sign of liquidity and operational effectiveness. The company has been successful in optimizing its credit policies and collection procedures, resulting in a more efficient utilization of its receivables.
Overall, the increasing trend in the receivables turnover ratio reflects Avantor Inc's ability to effectively manage its accounts receivable, which is essential for maintaining a healthy cash flow and financial stability. It indicates that the company has been proactive in converting its outstanding receivables into cash, thereby enhancing its overall financial performance and operational efficiency.
Peer comparison
Dec 31, 2024