Dow Inc (DOW)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 42,964,000 | 43,180,000 | 43,031,000 | 43,536,000 | 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 |
| Receivables | US$ in thousands | 6,864,000 | 7,316,000 | 7,079,000 | 7,069,000 | 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 |
| Receivables turnover | 6.26 | 5.90 | 6.08 | 6.16 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $42,964,000K ÷ $6,864,000K
= 6.26
The receivables turnover for Dow Inc has shown a relatively stable trend over the analyzed period from March 31, 2020, to December 31, 2024. The turnover ratio measures how efficiently the company is collecting its accounts receivable during a specific period.
The receivables turnover ratio increased gradually from 5.49 on March 31, 2020, to a peak of 7.34 on December 31, 2022. This upward trend indicates an improvement in the efficiency of Dow Inc in collecting payments from customers during this period.
However, from March 31, 2023, the ratio started to decline slightly, reaching 6.26 on December 31, 2024. Despite this decrease, the ratio remains relatively high compared to the initial values, suggesting that Dow Inc is still effectively managing its accounts receivable turnover.
Overall, the consistent receivables turnover ratio above 5 indicates that Dow Inc has been efficiently converting its receivables into cash and suggests a healthy liquidity position and effective credit management practices. Investors and stakeholders may view this positively as it indicates the company's ability to collect outstanding balances in a timely manner.
Peer comparison
Dec 31, 2024