DXP Enterprises Inc (DXPE)
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 | 1,624,653 | 1,630,258 | 1,604,174 | 1,550,194 | 1,451,697 | 1,344,867 | 1,248,616 | 1,166,773 | 1,093,114 | 1,037,874 | 970,085 | 937,202 | 993,218 | 1,056,018 | 1,161,769 | 1,242,731 | 1,252,318 | 1,267,818 | 1,248,873 | 1,225,530 |
| Receivables | US$ in thousands | 311,171 | 321,365 | 326,349 | 312,359 | 323,373 | 284,174 | 273,626 | 229,232 | 227,885 | 216,723 | 197,346 | 172,866 | -8,628 | 158,847 | 155,136 | 194,901 | 188,112 | 211,616 | 210,850 | 197,267 |
| Receivables turnover | 5.22 | 5.07 | 4.92 | 4.96 | 4.49 | 4.73 | 4.56 | 5.09 | 4.80 | 4.79 | 4.92 | 5.42 | — | 6.65 | 7.49 | 6.38 | 6.66 | 5.99 | 5.92 | 6.21 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,624,653K ÷ $311,171K
= 5.22
The receivables turnover for DXP Enterprises Inc has been relatively stable over the past few quarters, ranging between 4.49 and 5.22. This indicates that, on average, the company collects its outstanding receivables approximately 5 times a year.
The slight fluctuations in the receivables turnover ratio suggest that DXP Enterprises Inc has been effectively managing its accounts receivable in recent quarters. A higher turnover ratio typically indicates that the company is efficient in collecting payments from its customers, while a lower ratio may indicate issues with credit policies or collection procedures.
It is also worth noting the significant increase in receivables turnover in the most recent quarter compared to the previous quarter, which could be a positive sign of improved efficiency in collecting receivables. However, it would be important to monitor this trend over time to see if it is sustained.
Overall, the receivables turnover ratio provides insight into how quickly DXP Enterprises Inc is able to convert its accounts receivable into cash and is a key metric to assess the company's liquidity and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023