Corteva Inc (CTVA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,226,000 | 17,455,000 | 15,655,000 | 14,217,000 | 13,846,000 |
| Receivables | US$ in thousands | 5,488,000 | 5,701,000 | 4,811,000 | 4,926,000 | 5,528,000 |
| Receivables turnover | 3.14 | 3.06 | 3.25 | 2.89 | 2.50 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $17,226,000K ÷ $5,488,000K
= 3.14
The receivables turnover ratio indicates the efficiency with which Corteva Inc is able to collect payments from its customers. A higher turnover ratio is generally preferred as it signifies that the company is collecting receivables more quickly.
Over the past five years, Corteva's receivables turnover has shown a fluctuating trend. In 2023, the receivables turnover ratio improved to 3.14 from 3.06 in 2022, indicating that the company was able to collect payments from customers more efficiently during the year. This improvement is a positive sign for Corteva as it suggests better management of accounts receivable.
Comparing with previous years, the receivables turnover ratio was 3.25 in 2021, 2.89 in 2020, and 2.50 in 2019. The increase in 2023 compared to the prior year and the overall upward trend over the five-year period suggest an improving ability in collecting receivables.
However, it's important to note that the ratio should be analyzed in conjunction with other factors like the company's credit policies, industry standards, and economic conditions to get a comprehensive view of Corteva's receivables management efficiency. Overall, the trend in the receivables turnover ratio for Corteva Inc signals positive momentum in collecting payments from customers.
Peer comparison
Dec 31, 2023