Clean Harbors Inc (CLH)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,754,620 | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 |
| Receivables | US$ in thousands | 1,015,360 | 983,111 | 964,603 | 792,734 | 611,534 |
| Receivables turnover | 5.67 | 5.49 | 5.36 | 4.80 | 5.13 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,754,620K ÷ $1,015,360K
= 5.67
Clean Harbors Inc has shown a relatively stable trend in its receivables turnover over the past five years. The receivables turnover ratio, which measures how efficiently the company is collecting its accounts receivable, decreased slightly from 5.13 in 2020 to 4.80 in 2021. However, the ratio then improved in the subsequent years, reaching 5.36 in 2022, 5.49 in 2023, and 5.67 in 2024.
A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is generally a positive sign of good liquidity management. The increasing trend in the ratio over the past few years suggests that Clean Harbors Inc has been effectively managing its accounts receivable and converting them into cash efficiently. This improvement in collection efficiency may also indicate effective credit policies and timely follow-ups on outstanding payments.
Overall, the increasing trend in Clean Harbors Inc's receivables turnover ratio demonstrates the company's ability to efficiently manage its accounts receivable, which is a positive indicator for its financial health and liquidity position.