Peabody Energy Corp (BTU)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,946,700 | 4,981,900 | 3,318,300 | 2,881,100 | 4,623,400 |
| Receivables | US$ in thousands | 322,300 | 416,300 | 307,000 | 180,900 | 283,100 |
| Receivables turnover | 15.35 | 11.97 | 10.81 | 15.93 | 16.33 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,946,700K ÷ $322,300K
= 15.35
The receivables turnover ratio measures how efficiently a company is able to collect cash from its credit sales within a specific period. Peabody Energy Corp's receivables turnover has shown fluctuating trends over the past five years.
In 2023, the receivables turnover ratio increased to 15.35 times, indicating that the company collected its accounts receivable more frequently compared to the previous year. This could suggest tighter credit policies or improved collection efforts, resulting in quicker conversion of receivables into cash.
Conversely, in 2022 and 2021, the turnover ratios were 11.97 and 10.81, respectively, reflecting a lower collection rate than in 2023. This could potentially indicate delays in collecting cash from credit sales, which may have implications for the company's cash flow and liquidity.
Furthermore, in 2020 and 2019, the receivables turnover ratios were 15.93 and 16.33, respectively, showing a similar trend to 2023 with higher turnover ratios. This suggests that Peabody Energy Corp was more efficient in collecting cash from credit sales during those years.
Overall, the increasing trend in the receivables turnover ratio from 2021 to 2023 is a positive indicator of the company's improved efficiency in managing its accounts receivable. Management should continue monitoring this ratio to ensure timely collection of outstanding receivables and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2023