Balchem Corporation (BCPC)
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 | 922,439 | 926,271 | 940,590 | 946,031 | 942,358 | 922,960 | 876,562 | 842,234 | 799,023 | 766,603 | 743,874 | 714,864 | 703,644 | 689,458 | 672,913 | 661,112 | 643,705 | 640,717 | 637,165 | 639,298 |
| Receivables | US$ in thousands | 125,284 | 129,009 | 125,109 | 131,369 | 131,578 | 140,812 | 138,579 | 136,974 | 117,408 | 110,711 | 113,782 | 106,806 | 98,214 | 98,709 | 97,107 | 105,867 | 93,444 | 93,995 | 101,595 | 99,834 |
| Receivables turnover | 7.36 | 7.18 | 7.52 | 7.20 | 7.16 | 6.55 | 6.33 | 6.15 | 6.81 | 6.92 | 6.54 | 6.69 | 7.16 | 6.98 | 6.93 | 6.24 | 6.89 | 6.82 | 6.27 | 6.40 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $922,439K ÷ $125,284K
= 7.36
Balchem Corp.'s receivables turnover has shown consistency and improvement over the past eight quarters. The average receivables turnover for the most recent four quarters is 7.32, which indicates that the company is able to collect its accounts receivable approximately 7.32 times a year on average. This suggests an efficient management of receivables, as higher turnover ratios generally indicate that the company is collecting receivables more quickly.
The upward trend in receivables turnover from Q1 2022 to Q4 2023 signals that Balchem Corp. has been effectively managing its accounts receivable and converting them into cash faster. This is a positive indication of the company's liquidity and ability to generate cash flow from its credit sales.
Additionally, the consistently high turnover ratios above 7.0 indicate that Balchem Corp. has a well-structured credit and collections policy in place. A high receivables turnover ratio may also suggest that the company has strong customer relationships and a timely collection process.
Overall, the trend of increasing receivables turnover ratios reflects positively on Balchem Corp.'s financial health and efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023