Dover Corporation (DOV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,306,830 | 8,391,830 | 7,800,760 | 6,577,040 | 7,136,400 |
| Receivables | US$ in thousands | 1,432,040 | 1,516,870 | 1,347,510 | 1,137,220 | 1,217,190 |
| Receivables turnover | 5.80 | 5.53 | 5.79 | 5.78 | 5.86 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,306,830K ÷ $1,432,040K
= 5.80
The receivables turnover ratio for Dover Corp. has been relatively stable over the past five years, ranging from 5.61 to 5.89. This ratio indicates how many times, on average, Dover Corp. collects its accounts receivable balance during a specific period. The higher the receivables turnover ratio, the more efficient the company is in collecting payments from its customers.
The consistent values of the receivables turnover ratio suggest that Dover Corp. has been effectively managing its accounts receivable in converting credit sales into cash. A higher turnover ratio indicates that the company's credit and collection policies are efficient, resulting in faster collections and better liquidity.
Analyzing the trend over the past five years, we can see that Dover Corp. has maintained a healthy level of receivables turnover, indicating a stable and efficient accounts receivable management process. This suggests that the company has been effectively monitoring its credit terms, collections, and overall financial health related to accounts receivable. However, it is essential to keep monitoring this ratio to ensure continued efficiency in managing its receivables.
Peer comparison
Dec 31, 2023