Danaher Corporation (DHR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,693,000 | 31,383,000 | 29,239,000 | 21,983,000 | 17,796,000 |
| Receivables | US$ in thousands | 3,922,000 | 4,918,000 | 4,631,000 | 4,045,000 | 3,191,400 |
| Receivables turnover | 6.04 | 6.38 | 6.31 | 5.43 | 5.58 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $23,693,000K ÷ $3,922,000K
= 6.04
Danaher Corp.'s receivables turnover ratio has exhibited a generally increasing trend over the past five years, indicating the company's efficiency in collecting its accounts receivable. The ratio was 6.09 in 2023, slightly lower than the previous year's ratio of 6.40 but higher compared to 2021 and 2020. This suggests that the company took 6.09 days to collect its accounts receivable in 2023, a slight decrease in efficiency compared to 2022.
Overall, the company has shown consistent effectiveness in converting its accounts receivable into cash over the years. This trend bodes well for the company's liquidity position and indicates strong credit policies and efficient debt collection practices. The fluctuation in the ratio between 2022 and 2023 may warrant further investigation into potential changes in the company's collection policies or customer payment patterns.
Peer comparison
Dec 31, 2023