Colgate-Palmolive Company (CL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,457,000 | 17,967,000 | 17,421,000 | 16,471,000 | 15,693,000 |
| Receivables | US$ in thousands | 1,586,000 | 1,504,000 | 1,297,000 | 1,264,000 | 1,440,000 |
| Receivables turnover | 12.27 | 11.95 | 13.43 | 13.03 | 10.90 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,457,000K ÷ $1,586,000K
= 12.27
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that Colgate-Palmolive Co. is collecting its accounts receivable more quickly.
Over the past five years, Colgate-Palmolive Co.'s receivables turnover has shown a generally increasing trend, from 10.90 in 2019 to 12.27 in 2023. This suggests that the company has been improving its collections process and is becoming more efficient at converting its accounts receivable into cash.
In 2021, the receivables turnover ratio peaked at 13.43, indicating a particularly strong performance in collecting receivables that year. However, there was a slight decline in 2022 to 11.95, before rebounding to 12.27 in 2023.
Overall, the upward trend in the receivables turnover ratio reflects positively on Colgate-Palmolive Co.'s ability to manage its accounts receivable effectively and indicates a healthy financial position in terms of receivables management.
Peer comparison
Dec 31, 2023