Dow Inc (DOW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 | 42,951,000 |
| Receivables | US$ in thousands | 6,614,000 | 7,755,000 | 9,554,000 | 7,390,000 | 7,555,000 |
| Receivables turnover | 6.75 | 7.34 | 5.75 | 5.22 | 5.69 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $44,622,000K ÷ $6,614,000K
= 6.75
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher receivables turnover ratio indicates that the company is collecting cash from its customers more quickly.
Based on the data provided, Dow Inc's receivables turnover ratio has varied over the past five years. In 2023, the ratio was 6.75, showing a slight decrease from 7.34 in 2022. This indicates that in 2023, Dow Inc took approximately 6.75 times to collect its accounts receivable, compared to 7.34 times in 2022.
Furthermore, while the 2023 ratio is slightly lower than the previous year, it is still higher than the ratios for 2021, 2020, and 2019, which were 5.75, 5.22, and 5.69 respectively. This suggests an improvement in the efficiency of Dow Inc's receivables turnover compared to prior years.
In conclusion, the trend in Dow Inc's receivables turnover ratio indicates varying efficiency in collecting cash from customers over the years, with a slight decrease in 2023 compared to 2022 but an improvement compared to the ratios of 2021, 2020, and 2019.
Peer comparison
Dec 31, 2023