DT Midstream Inc (DTM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 922,000 | 920,000 | 840,000 |
| Receivables | US$ in thousands | 173,000 | 161,000 | 173,000 |
| Receivables turnover | 5.33 | 5.71 | 4.86 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $922,000K ÷ $173,000K
= 5.33
The receivables turnover ratio for DT Midstream Inc has been showing a general increasing trend over the past four years. In 2020, the company had a relatively low receivables turnover of 1.88, indicating that on average, it took approximately 1.88 times to collect outstanding receivables during that year.
However, there was a significant improvement in 2021 with a receivables turnover of 4.72, suggesting that the company was able to collect outstanding receivables more efficiently compared to the prior year. This trend continued in 2022 with a further increase to 5.71, indicating a faster collection of receivables.
In 2023, the receivables turnover ratio slightly decreased to 5.46, which still reflects a relatively efficient collection process. A high receivables turnover ratio generally indicates that the company is collecting its outstanding receivables quickly, which is a positive indicator of efficient management of accounts receivable.
Overall, the increasing trend in the receivables turnover ratio over the years suggests that DT Midstream Inc has been improving its collection processes and managing its receivables effectively.
Peer comparison
Dec 31, 2023