Dow Inc (DOW)
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 | 44,622,000 | 45,860,000 | 49,245,000 | 53,489,000 | 56,902,000 | 59,407,000 | 60,129,000 | 58,350,000 | 54,968,000 | 51,310,000 | 46,185,000 | 40,654,000 | 38,542,000 | 38,040,000 | 39,092,000 | 41,752,000 | 42,951,000 | |||
| Receivables | US$ in thousands | 6,614,000 | 7,382,000 | 7,658,000 | 7,812,000 | 7,755,000 | 8,530,000 | 9,717,000 | 9,959,000 | 9,554,000 | 9,409,000 | 9,106,000 | 8,265,000 | 7,390,000 | 7,072,000 | 6,881,000 | 7,611,000 | 7,555,000 | 8,808,000 | 8,569,000 | 12,375,000 |
| Receivables turnover | 6.75 | 6.21 | 6.43 | 6.85 | 7.34 | 6.96 | 6.19 | 5.86 | 5.75 | 5.45 | 5.07 | 4.92 | 5.22 | 5.38 | 5.68 | 5.49 | 5.69 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $44,622,000K ÷ $6,614,000K
= 6.75
The receivables turnover of Dow Inc has been fluctuating over the past eight quarters. The ratio measures how efficiently the company is collecting outstanding receivables from its customers. A higher turnover ratio indicates that Dow Inc is collecting its receivables more quickly.
The data shows that the receivables turnover ratio has decreased from 7.34 in the fourth quarter of 2022 to 6.75 in the fourth quarter of 2023, indicating a slower collection of receivables during this period. However, the ratio has been relatively stable, hovering around 6.2 to 7.0 over the past two years.
It is important to further investigate the reasons behind the fluctuation in the receivables turnover ratio to evaluate the effectiveness of Dow Inc's credit policies and the management of its accounts receivable. Additionally, comparing the company's turnover ratio with industry benchmarks would provide insight into its performance relative to its peers.
Peer comparison
Dec 31, 2023