Avantor Inc (AVTR)

Receivables turnover

		Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	6,825,600	6,866,700	6,967,200	7,039,400	7,175,700	7,342,300	7,512,400	7,625,000	7,602,800	7,550,900	7,386,100	7,269,400	7,040,100	6,660,200	6,393,600	6,126,700	6,025,500	6,079,200
Receivables	US$ in thousands	1,129,000	1,129,700	1,150,200	1,150,300	1,216,000	1,277,200	1,218,400	1,231,400	1,269,600	1,345,400	1,222,100	1,184,700	1,268,800	1,201,500	1,113,300	1,036,900	983,700	1,041,100	988,800	983,300
Receivables turnover		6.05	6.08	6.06	6.12	5.90	5.75	6.17	6.19	5.99	5.61	6.04	6.14	5.55	5.54	5.74	5.91	6.13	5.84

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,825,600K ÷ $1,129,000K
= 6.05

The receivables turnover ratio for Avantor Inc has shown some fluctuation over the past few quarters, ranging from a low of 5.54 to a high of 6.19. The average receivables turnover ratio over this period is approximately 6.01, indicating that, on average, the company collects its accounts receivable approximately 6 times per year.

A higher receivables turnover ratio suggests that the company is more efficient in collecting its accounts receivable, which is generally viewed positively as it indicates strong liquidity and effective credit management. Avantor Inc's receivables turnover ratios have generally been above 6, which indicates that the company has been effectively managing its accounts receivable and collecting payments in a timely manner.

However, it is important to note that the slight fluctuations in the receivables turnover ratio over the period may warrant further investigation to identify any underlying factors influencing the company's ability to collect receivables. Overall, the trend in Avantor Inc's receivables turnover ratio suggests a good level of efficiency in managing its accounts receivable.