Clearwater Paper Corporation (CLW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,082,800 | 2,080,100 | 1,772,600 | 1,868,600 | 1,761,500 |
| Receivables | US$ in thousands | 184,500 | 188,800 | 167,400 | 160,600 | 159,400 |
| Receivables turnover | 11.29 | 11.02 | 10.59 | 11.64 | 11.05 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,082,800K ÷ $184,500K
= 11.29
The receivables turnover for Clearwater Paper Corp has fluctuated over the past five years. In 2023, the receivables turnover ratio stood at 11.30, indicating that the company collected its accounts receivable approximately 11.30 times during the year. This represents a slight increase from the previous year's ratio of 11.02.
Analyzing further, the receivables turnover ratio was 10.59 in 2021, 11.64 in 2020, and 11.05 in 2019. The trend shows a generally consistent ability to collect receivables efficiently, albeit with some variations year over year.
A higher receivables turnover ratio suggests that Clearwater Paper Corp has been effective in collecting outstanding payments from customers, which can help improve cash flow and liquidity. However, it is essential to monitor changes in this ratio over time to ensure that the company's credit policies and collections processes remain effective and aligned with its business operations.