HF Sinclair Corp (DINO)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 31,780,330 | 32,993,160 | 34,745,460 | 38,104,440 | 38,041,410 |
| Receivables | US$ in thousands | 1,781,650 | 1,978,380 | 1,742,520 | 1,660,660 | 1,756,710 |
| Receivables turnover | 17.84 | 16.68 | 19.94 | 22.95 | 21.65 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $31,780,330K ÷ $1,781,650K
= 17.84
The receivables turnover of HF Sinclair Corp. has shown fluctuations over the past 8 quarters. The company's ability to collect on its accounts receivable has generally been strong, with the turnover ratios ranging from 9.86 to 23.07. In Q1 2023, the receivables turnover ratio was at its highest point of 23.07, indicating that the company was able to convert its accounts receivable into cash 23.07 times during the period. This may suggest efficient credit and collection policies or timely invoicing practices.
However, the receivables turnover ratio decreased in the following quarters, dropping to 20.08 in Q2 2023, 16.83 in Q3 2023, and further down to 17.94 in Q4 2023. While the ratios are still relatively favorable, the downward trend may warrant further investigation into the company's credit policies, customer payment patterns, or potential issues with accounts receivable management.
Overall, HF Sinclair Corp. has demonstrated effective management of its accounts receivable in general, particularly evident in the higher turnover ratios observed in some quarters. However, it is essential for the company to monitor and address any declining trends in the receivables turnover ratio to ensure timely collection of outstanding debts and optimize cash flow management.