DT Midstream Inc (DTM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 922,000 | 921,000 | 922,000 | 925,000 | 920,000 | 900,000 | 877,000 | 858,000 | |||
| Receivables | US$ in thousands | 173,000 | 150,000 | 148,000 | 122,000 | 161,000 | 150,000 | 137,000 | 119,000 | 173,000 | 150,000 | 112,000 |
| Receivables turnover | 5.33 | 6.14 | 6.23 | 7.58 | 5.71 | 6.00 | 6.40 | 7.21 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $922,000K ÷ $173,000K
= 5.33
The receivables turnover ratio for DT Midstream Inc has shown variability over the past eight quarters. The ratio fluctuated between 5.46 and 7.58 times during this period.
In Q1 2023, the receivables turnover was at its peak at 7.58 times, indicating that the company collected its accounts receivable 7.58 times during the quarter. This could suggest efficient management of accounts receivable, with quicker collection cycles.
However, in Q4 2023, the receivables turnover decreased to 5.46 times, reflecting a slower rate of collection compared to the previous quarter. While the ratio is still relatively healthy, the decline may be worth monitoring to ensure that the company maintains effective credit and collection practices.
Over the eight quarters analyzed, the company's receivables turnover ratio generally remained within a moderate range, indicating that DT Midstream Inc has been relatively effective in managing its accounts receivable and converting them into cash. It is essential for the company to continue monitoring this ratio to ensure efficient working capital management and timely collections.
Peer comparison
Dec 31, 2023