Axalta Coating Systems Ltd (AXTA)
Receivables turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,184,100 | 5,123,500 | 5,053,200 | 4,994,200 | 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 | 4,482,200 | 4,549,600 | 4,588,600 | 4,643,300 |
| Receivables | US$ in thousands | 1,259,900 | 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 | 830,100 | 935,700 | 980,600 | 920,500 |
| Receivables turnover | 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 | 5.40 | 4.86 | 4.68 | 5.04 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,184,100K ÷ $1,259,900K
= 4.11
The receivables turnover ratio for Axalta Coating Systems Ltd has fluctuated over the past eight quarters, ranging from a low of 3.94 to a high of 4.58. In general, the company has been able to collect its accounts receivable approximately 4 times a year, indicating a satisfactory level of efficiency in collecting outstanding payments from customers. The decreasing trend in the receivables turnover ratio from Q4 2022 to Q3 2023 and then a slight increase in Q4 2023 suggests that the company might be experiencing some challenges in collecting receivables efficiently, which could potentially indicate issues with credit policies or an increase in overdue receivables. It is important for the company to closely monitor this ratio and take necessary actions to ensure timely collection of receivables to maintain healthy cash flow and financial stability.
Peer comparison
Dec 31, 2023