ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,774,766 | 2,749,545 | 2,688,814 | 2,629,569 | 2,593,480 | |||
| Receivables | US$ in thousands | 385,198 | 388,483 | 412,668 | 404,128 | 374,329 | 359,956 | — | — |
| Receivables turnover | 7.20 | 7.08 | 6.52 | 6.51 | 6.93 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,774,766K ÷ $385,198K
= 7.20
ESAB Corp's receivables turnover ratio has shown a fluctuating trend over the past five quarters. The ratio ranged from 6.51 to 7.20, indicating the company's ability to efficiently collect payments from customers during these periods. However, the slight variations in the ratio suggest some inconsistency in managing accounts receivable. A higher receivables turnover ratio typically indicates that the company is more effective in collecting debts and converting credit sales into cash quickly. ESAB Corp should monitor this ratio closely to ensure a steady and efficient collection process, potentially by implementing more rigorous credit policies or improving collection procedures.
Peer comparison
Dec 31, 2023