Dril-Quip Inc (DRQ)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 424,060 | 361,924 | 322,945 | 364,973 | 414,806 |
| Receivables | US$ in thousands | 283,998 | 235,932 | 203,584 | 256,520 | 248,160 |
| Receivables turnover | 1.49 | 1.53 | 1.59 | 1.42 | 1.67 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $424,060K ÷ $283,998K
= 1.49
Dril-Quip, Inc.'s receivables turnover ratio has exhibited fluctuations over the last five years. The ratio decreased from 1.67 in 2019 to 1.42 in 2020 before increasing to 1.59 in 2021. However, there was a subsequent decline in 2022 to 1.53 and another decrease to 1.49 in 2023.
A lower receivables turnover ratio indicates that the company is taking longer to collect its accounts receivable, which could potentially signal issues with credit policies, collection efforts, or the creditworthiness of customers. However, it can also indicate that the company has lenient credit terms to promote sales.
On the other hand, a higher receivables turnover ratio is generally seen as positive, as it suggests that the company is efficiently managing its accounts receivable and collecting payments from customers in a timely manner.
Therefore, while the fluctuations in the receivables turnover ratio of Dril-Quip, Inc. over the past years may warrant further investigation to understand the underlying factors driving these changes, overall, the company's ability to efficiently collect receivables appears to have varied over the period under consideration.
Peer comparison
Dec 31, 2023