Eastman Chemical Company (EMN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,210,000 | 10,580,000 | 10,476,000 | 8,473,000 | 9,273,000 |
| Receivables | US$ in thousands | 888,000 | 992,000 | 1,264,000 | 1,344,000 | 1,191,000 |
| Receivables turnover | 10.37 | 10.67 | 8.29 | 6.30 | 7.79 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,210,000K ÷ $888,000K
= 10.37
The receivables turnover ratio for Eastman Chemical Co has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is able to collect cash from its customers.
In 2023, the receivables turnover ratio decreased to 7.98 from 8.29 in 2022, suggesting a slight decline in the company's ability to collect its receivables during the year. However, the ratio still remains relatively high, indicating that Eastman Chemical Co is efficient in collecting cash from customers compared to previous years.
Looking back over the five-year period, the company's receivables turnover ratio has generally been on an upward trajectory, reaching a peak of 8.29 in 2022. This indicates an improvement in the efficiency of receivables collection over the years.
Overall, the company's receivables turnover ratio of around 8 in 2023 is a positive sign, showing that Eastman Chemical Co has been successful in managing its accounts receivable and converting them into cash. However, it is important for the company to continue monitoring this ratio to ensure efficient cash flow management in the future.
Peer comparison
Dec 31, 2023