Caterpillar Inc (CAT)
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 | 67,060,000 | 66,587,000 | 64,771,000 | 61,700,000 | 59,427,000 | 56,628,000 | 54,031,000 | 52,673,000 | 50,971,000 | 48,408,000 | 45,892,000 | 43,000,000 | 41,748,000 | 43,657,000 | 46,534,000 | 50,969,000 | 53,800,000 | 54,998,000 | 55,750,000 | 55,329,000 |
| Receivables | US$ in thousands | 18,820,000 | 18,742,000 | 18,704,000 | 18,349,000 | 17,869,000 | 17,076,000 | 17,315,000 | 18,138,000 | 17,375,000 | 16,566,000 | 17,363,000 | 17,288,000 | 16,780,000 | 15,935,000 | 6,191,000 | 7,645,000 | 7,648,000 | 7,156,000 | 7,870,000 | 7,918,000 |
| Receivables turnover | 3.56 | 3.55 | 3.46 | 3.36 | 3.33 | 3.32 | 3.12 | 2.90 | 2.93 | 2.92 | 2.64 | 2.49 | 2.49 | 2.74 | 7.52 | 6.67 | 7.03 | 7.69 | 7.08 | 6.99 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $67,060,000K ÷ $18,820,000K
= 3.56
The receivables turnover ratio measures how efficiently a company is collecting cash from its customers in relation to its accounts receivable balance. A higher receivables turnover indicates better efficiency in collecting payments.
Based on the data provided for Caterpillar Inc. over the past eight quarters, we observe fluctuations in the receivables turnover ratio. The trend shows a general stability in the range of 6.44 to 7.29, with some variability over the quarters.
In Q4 2023, the receivables turnover was 7.20, slightly lower than the previous quarter's ratio of 7.29. This minor decrease may suggest a small slowdown in the collection of receivables compared to the previous quarter.
The highest receivables turnover ratio was observed in Q3 2023 at 7.29, indicating efficient collection of accounts receivable during that period. This suggests that Caterpillar was able to convert its accounts receivable into cash 7.29 times over the quarter.
Conversely, the lowest receivables turnover ratio was seen in Q1 2022 at 5.77, showing lower efficiency in collecting payments from customers and potentially signaling a need for improved accounts receivable management.
Overall, Caterpillar Inc. has maintained a relatively stable level of receivables turnover, indicating a consistent ability to collect from customers efficiently. However, it is important for the company to monitor trends in this ratio to ensure ongoing effectiveness in managing its accounts receivable and optimizing cash flow.
Peer comparison
Dec 31, 2023