CF Industries Holdings Inc (CF)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,631,000 | 11,186,000 | 6,538,000 | 4,124,000 | 4,590,000 |
| Receivables | US$ in thousands | 505,000 | 582,000 | 497,000 | 265,000 | 242,000 |
| Receivables turnover | 13.13 | 19.22 | 13.15 | 15.56 | 18.97 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,631,000K ÷ $505,000K
= 13.13
CF Industries Holdings Inc's receivables turnover ratio has fluctuated over the past five years. The receivables turnover ratio measures how efficiently the company is able to collect on its credit sales.
In 2023, the receivables turnover ratio was 13.13, indicating that the company was able to turn over its accounts receivable approximately 13.13 times during the year. This represents a decrease from the prior year, when the ratio was 19.22. The decrease in the ratio could imply that the company took longer to collect on its credit sales in 2023 compared to 2022.
Comparing the 2023 ratio to the ratios of the preceding years, we see that the ratio in 2023 was closer to the ratio in 2021 (13.15) than to the ratios in 2020 (15.56) and 2019 (18.97). This suggests that CF Industries Holdings Inc's collection efficiency in 2023 was more consistent with the performance in 2021, with a slight decline compared to 2020 and 2019.
Overall, while the receivables turnover ratio of 13.13 in 2023 indicates the company was able to collect on its credit sales 13.13 times during the year, the decrease from the prior year and the comparison to preceding years suggest some variability in the efficiency of CF Industries Holdings Inc's collections process.
Peer comparison
Dec 31, 2023