Eastman Chemical Company (EMN)
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 | 9,210,000 | 9,376,000 | 9,818,000 | 10,278,000 | 10,580,000 | 10,901,000 | 10,912,000 | 10,781,000 | 10,476,000 | 9,968,000 | 9,370,000 | 8,641,000 | 8,473,000 | 8,492,000 | 8,695,000 | 9,134,000 | 9,273,000 | 9,444,000 | 9,666,000 | 9,924,000 |
| Receivables | US$ in thousands | 888,000 | 880,000 | 923,000 | 1,051,000 | 992,000 | 1,137,000 | 1,210,000 | 1,187,000 | 1,264,000 | 1,356,000 | 1,293,000 | 1,229,000 | 1,344,000 | 1,077,000 | 904,000 | 1,045,000 | 1,191,000 | 1,191,000 | 1,232,000 | 1,297,000 |
| Receivables turnover | 10.37 | 10.65 | 10.64 | 9.78 | 10.67 | 9.59 | 9.02 | 9.08 | 8.29 | 7.35 | 7.25 | 7.03 | 6.30 | 7.88 | 9.62 | 8.74 | 7.79 | 7.93 | 7.85 | 7.65 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,210,000K ÷ $888,000K
= 10.37
The receivables turnover ratio of Eastman Chemical Co has shown a consistent trend over the past eight quarters. The ratios ranged from 6.54 to 8.29, with an average of approximately 7.62. This indicates that, on average, the company collects its accounts receivable approximately 7.62 times during a year.
A higher receivables turnover ratio suggests that the company is efficient in collecting cash from its credit sales, which can be seen in the higher ratios of 8.16 in Q3 2023 and 8.15 in Q2 2023. Conversely, lower ratios such as 6.67 in Q3 2022 and 6.54 in Q2 2022 may indicate potential issues with the company's credit and collection policies or difficulties in collecting payments from customers.
Overall, the trend shows that Eastman Chemical Co has been effectively managing its accounts receivable turnover, with fluctuations that may require further investigation into the underlying reasons for the changes in specific quarters.
Peer comparison
Dec 31, 2023