Chemours Co (CC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,818,000 | 6,638,000 | 6,139,000 | 4,737,000 | 5,318,000 |
| Receivables | US$ in thousands | 610,000 | 626,000 | 720,000 | 511,000 | 674,000 |
| Receivables turnover | 9.54 | 10.60 | 8.53 | 9.27 | 7.89 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,818,000K ÷ $610,000K
= 9.54
Receivables turnover measures how efficiently a company collects cash from its customers in a given period. A higher receivables turnover ratio indicates a shorter time between credit sales and cash collection, reflecting better efficiency in managing accounts receivable.
Analyzing Chemours Co's receivables turnover over the past five years reveals a fluctuating trend. In 2023, the receivables turnover ratio decreased to 9.54 from 10.60 in 2022, indicating that the company took longer to collect cash from customers compared to the previous year. However, the 2023 ratio remains relatively high, suggesting effective management of accounts receivable.
Comparing the 2023 ratio to earlier years, Chemours Co's collection efficiency improved from 2019 to 2021 before a slight decline in 2022. While the ratio in 2023 dipped, it is still higher than the 2019 and 2021 levels, indicating continued effectiveness in collecting receivables.
Overall, Chemours Co's receivables turnover has shown variations, but the company has generally managed its accounts receivable efficiently in recent years. Monitoring this ratio can provide valuable insights into the company's cash flow management and customer credit policies.
Peer comparison
Dec 31, 2023