Crown Holdings Inc (CCK)
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 | 11,532,000 | 11,716,000 | 11,928,000 | 12,382,000 | 12,632,000 | 12,492,000 | 12,255,000 | 11,672,000 | 11,632,000 | 11,816,000 | 11,385,000 | 10,666,000 | 10,345,000 | 10,174,000 | 10,769,000 | 11,667,000 | 11,665,000 | 11,608,000 | 11,698,000 | 11,709,000 |
| Receivables | US$ in thousands | 1,719,000 | 1,751,000 | 1,897,000 | 1,957,000 | 1,843,000 | 2,124,000 | 2,151,000 | 2,170,000 | 1,889,000 | 1,840,000 | 1,766,000 | 1,868,000 | 1,522,000 | 1,821,000 | 1,604,000 | 1,554,000 | 1,528,000 | 1,795,000 | 1,830,000 | 1,686,000 |
| Receivables turnover | 6.71 | 6.69 | 6.29 | 6.33 | 6.85 | 5.88 | 5.70 | 5.38 | 6.16 | 6.42 | 6.45 | 5.71 | 6.80 | 5.59 | 6.71 | 7.51 | 7.63 | 6.47 | 6.39 | 6.94 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,532,000K ÷ $1,719,000K
= 6.71
Crown Holdings, Inc. has shown a relatively stable trend in its receivables turnover ratio over the past eight quarters. The company's receivables turnover ratio ranged from 5.29 to 7.02 during this period.
The efficiency of Crown Holdings, Inc. in collecting its accounts receivable can be assessed by this ratio, which indicates how many times during a period the company collects its average accounts receivable balance. A higher turnover ratio is generally favorable as it suggests that the company is collecting its receivables more frequently, which could indicate strong credit policies and effective management of collections.
The average receivables turnover over the eight quarters is approximately 6.47. This indicates that, on average, Crown Holdings, Inc. collects its accounts receivable approximately 6.47 times a year. The stability of this ratio suggests a consistent performance in managing its receivables over the period analyzed. However, it is essential to compare this ratio with industry benchmarks to gain a better perspective on the company's performance relative to its peers.
Overall, based on the receivables turnover ratios provided, Crown Holdings, Inc. has been maintaining a reasonable level of efficiency in collecting its accounts receivable over the past two years, with some fluctuations quarter to quarter but no significant downward or upward trends.
Peer comparison
Dec 31, 2023