Dow Inc (DOW)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,964,000 | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 |
| Receivables | US$ in thousands | 6,864,000 | 6,614,000 | 7,755,000 | 9,554,000 | 7,390,000 |
| Receivables turnover | 6.26 | 6.75 | 7.34 | 5.75 | 5.22 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $42,964,000K ÷ $6,864,000K
= 6.26
The receivables turnover ratio for Dow Inc has shown a generally increasing trend over the past five years. In 2020, the ratio was 5.22, indicating that the company turned over its accounts receivable approximately 5.22 times during that year. This ratio increased to 5.75 in 2021, 7.34 in 2022, and then decreased slightly to 6.75 in 2023 before stabilizing at 6.26 in 2024.
A higher receivables turnover ratio suggests that Dow Inc is collecting its outstanding receivables more efficiently, converting credit sales into cash more rapidly. This improvement in collection efficiency can indicate effective credit policies or stronger relationships with customers.
Overall, the increasing trend in the receivables turnover ratio for Dow Inc reflects positively on its liquidity management and ability to convert receivables into cash, which is crucial for maintaining healthy working capital levels.
Peer comparison
Dec 31, 2024