Balchem Corporation (BCPC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 922,439 | 942,358 | 799,023 | 703,644 | 643,705 |
| Receivables | US$ in thousands | 125,284 | 131,578 | 117,408 | 98,214 | 93,444 |
| Receivables turnover | 7.36 | 7.16 | 6.81 | 7.16 | 6.89 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $922,439K ÷ $125,284K
= 7.36
Balchem Corp.'s receivables turnover has shown a generally positive trend over the past five years, with values ranging from 6.81 to 7.36. The receivables turnover ratio indicates that, on average, the company collects its accounts receivable approximately 7 times annually. This improvement suggests that Balchem Corp. has been effectively managing its receivables by efficiently converting credit sales into cash. The higher turnover ratio reflects that the company is collecting its outstanding receivables more frequently, potentially reducing the risk of bad debts and improving liquidity. Overall, a rising trend in receivables turnover is a positive indicator of the company's efficiency in collecting payments from its customers.
Peer comparison
Dec 31, 2023