CVR Energy Inc (CVI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,610,000 | 9,247,000 | 10,896,000 | 7,242,000 | 3,930,000 |
| Receivables | US$ in thousands | 306,000 | 286,000 | 380,000 | 325,000 | 222,000 |
| Receivables turnover | 24.87 | 32.33 | 28.67 | 22.28 | 17.70 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,610,000K ÷ $306,000K
= 24.87
The receivables turnover for CVR Energy Inc has shown a consistent upward trend over the past five years, starting at 17.70 in December 2020 and reaching 24.87 by December 2024. This indicates that the company has been able to collect its accounts receivable more efficiently over time.
A higher receivables turnover ratio signifies that CVR Energy Inc is collecting its outstanding receivables more quickly, which is a positive sign for the company's cash flow and liquidity. It could suggest effective credit policies, efficient collections practices, or a strong customer base that pays promptly.
However, the slight decrease in the receivables turnover ratio from 32.33 in December 2023 to 24.87 in December 2024 should be monitored closely. This may warrant further investigation into the reasons behind the decrease to ensure that it does not indicate potential issues with credit risk, deteriorating customer relationships, or changes in sales terms.
Overall, the improving trend in the receivables turnover ratio for CVR Energy Inc demonstrates effective management of accounts receivable and indicates a healthy financial position in terms of liquidity and cash flow management.
Peer comparison
Dec 31, 2024