Axalta Coating Systems Ltd (AXTA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,184,100 | 4,884,400 | 4,416,200 | 3,737,600 | 4,482,200 |
| Receivables | US$ in thousands | 1,259,900 | 1,067,400 | 937,500 | 869,800 | 830,100 |
| Receivables turnover | 4.11 | 4.58 | 4.71 | 4.30 | 5.40 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,184,100K ÷ $1,259,900K
= 4.11
The receivables turnover ratio for Axalta Coating Systems Ltd has shown a fluctuating trend over the past five years, ranging from 4.11 to 5.40. A lower receivables turnover ratio indicates a longer period for the company to collect outstanding receivables, which can potentially lead to liquidity issues.
In 2023, the receivables turnover ratio decreased to 4.11 from 4.58 in 2022, suggesting a slower rate of collection in the most recent year. This could indicate potential inefficiencies in the company's credit management or collection processes.
It is important for Axalta Coating Systems Ltd to monitor and improve its receivables turnover ratio to ensure timely collection of outstanding receivables and maintain healthy cash flow levels. This could involve implementing stricter credit policies, incentivizing early payment discounts, or enhancing collection procedures to enhance financial efficiency and liquidity.
Peer comparison
Dec 31, 2023