Axalta Coating Systems Ltd (AXTA)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,276,000 | 5,262,300 | 5,251,300 | 5,194,300 | 5,184,300 | 5,123,700 | 5,053,400 | 4,994,300 | 4,884,400 | 4,784,900 | 4,634,800 | 4,526,700 | 4,416,200 | 4,353,500 | 4,291,800 | 3,817,700 | 3,737,600 | 3,761,500 | 3,841,600 | 4,346,400 |
| Receivables | US$ in thousands | 1,248,000 | 1,298,000 | 1,268,000 | 1,242,000 | 1,260,000 | 1,301,100 | 1,271,100 | 1,169,600 | 1,067,400 | 1,106,900 | 1,100,600 | 1,029,800 | 937,500 | 1,050,100 | 1,035,700 | 902,300 | 869,800 | 824,200 | 664,000 | 777,600 |
| Receivables turnover | 4.23 | 4.05 | 4.14 | 4.18 | 4.11 | 3.94 | 3.98 | 4.27 | 4.58 | 4.32 | 4.21 | 4.40 | 4.71 | 4.15 | 4.14 | 4.23 | 4.30 | 4.56 | 5.79 | 5.59 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,276,000K ÷ $1,248,000K
= 4.23
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding accounts receivable during a specific period. Higher values indicate a shorter time it takes for the company to collect its receivables, which generally signifies better liquidity and operational efficiency.
Based on the data provided for Axalta Coating Systems Ltd, we observe fluctuations in the receivables turnover ratio over the reported quarters. The receivables turnover was relatively stable in the range of 4.14 to 5.79 for the period covered, showing some variability but generally hovering around the mid to high end of the spectrum.
The ratio peaked at 5.79 in June 30, 2020, suggesting that during that period, Axalta was able to convert its receivables into cash relatively quickly compared to other quarters. However, there was a noticeable decline in the ratio in the subsequent quarters, reaching a low of 3.94 in September 30, 2023. This may indicate challenges in collecting accounts receivable efficiently during that particular quarter.
Overall, the average receivables turnover for the period was around 4.36, indicating that Axalta generally took around 4.36 times to collect its accounts receivable throughout the reporting period. It is essential for the company to monitor this ratio consistently to ensure efficient management of receivables and maintain healthy cash flows. Further analysis would be required to understand the reasons behind the fluctuations and to implement strategies for improvement if necessary.
Peer comparison
Dec 31, 2024