Now Inc (DNOW)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,319,000 | 2,310,000 | 2,299,000 | 2,244,000 | 2,133,000 | 2,021,000 | 1,883,000 | 1,744,000 | 1,632,000 | 1,520,000 | 1,407,000 | 1,377,000 | 1,620,000 | 1,939,000 | 2,364,000 | 2,770,000 | 2,951,000 | 3,076,000 | 3,147,000 | 3,148,000 |
| Receivables | US$ in thousands | 384,000 | 396,000 | 417,000 | 422,000 | 398,000 | 406,000 | 389,000 | 341,000 | 304,000 | 299,000 | 271,000 | 245,000 | 198,000 | 213,000 | 242,000 | 366,000 | 370,000 | 466,000 | 496,000 | 513,000 |
| Receivables turnover | 6.04 | 5.83 | 5.51 | 5.32 | 5.36 | 4.98 | 4.84 | 5.11 | 5.37 | 5.08 | 5.19 | 5.62 | 8.18 | 9.10 | 9.77 | 7.57 | 7.98 | 6.60 | 6.34 | 6.14 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,319,000K ÷ $384,000K
= 6.04
The receivables turnover for NOW Inc has shown a generally stable trend over the past eight quarters, ranging from 4.84 to 6.04. This ratio measures how efficiently the company is collecting its accounts receivables. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
From the data provided, we observe that the receivables turnover ratio increased steadily from Q1 2022 to Q4 2023. This suggests that NOW Inc has been improving its ability to collect payments from customers within a shorter time period.
On average, the company collects its receivables approximately 5.41 times a year over the last eight quarters. This indicates that the company is efficient in its accounts receivables management.
Overall, the trend in NOW Inc's receivables turnover ratio points towards effective management of receivables and a positive indicator of the company's financial health.
Peer comparison
Dec 31, 2023