Brinks Company (BCO)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,592,500	4,335,000	4,061,700	3,591,900	3,578,000
Receivables	US$ in thousands	796,300	888,500	720,200	702,600	661,300
Receivables turnover		5.77	4.88	5.64	5.11	5.41

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,592,500K ÷ $796,300K
= 5.77

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. Brink`s Co. has shown a fluctuating trend in its receivables turnover over the past five years.

In 2023, the receivables turnover ratio increased to 6.12 from 5.10 in 2022, indicating that Brink`s Co. collected its accounts receivable more frequently during the year. This improvement suggests better management of credit and collection processes, potentially leading to improved cash flow and liquidity.

Comparing the 2023 ratio to the ratios of the previous years, there seems to be a general improvement in receivables turnover performance since 2020 when the ratio was at 5.25. The ratio peaked in 2023, indicating the company's enhanced ability to convert credit sales into cash.

Overall, the increasing trend in Brink`s Co.'s receivables turnover ratio reflects positively on the company's efficiency in managing its accounts receivable and collecting payments from customers over the years.