Element Solutions Inc (ESI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Receivables | US$ in thousands | 439,600 | 461,800 | 455,800 | 492,200 | 403,400 |
| Receivables turnover | 5.59 | 5.05 | 5.59 | 4.88 | 4.60 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,456,900K ÷ $439,600K
= 5.59
The receivables turnover ratios for Element Solutions Inc. over the specified periods demonstrate a trend of initial improvement, followed by slight fluctuations. At the end of 2020, the ratio stood at 4.60, indicating that, on average, the company collected its receivables approximately 4.6 times during that year. By the end of 2021, the ratio increased to 4.88, reflecting a modest enhancement in collection efficiency.
This upward trajectory continued into 2022, with the receivables turnover rising to 5.59, suggesting a further improvement in the company's ability to collect receivables more promptly. However, in 2023, the ratio declined slightly to 5.05, indicating a temporary slowdown in collection efficiency or changes in credit policy or customer payment behavior.
By the end of 2024, the receivables turnover ratio returned to 5.59, reaching the same level as in 2022, which could imply a recovery or stabilization of collection practices.
Overall, the data indicates that Element Solutions Inc. has maintained relatively stable receivables turnover rates with periods of improvement, reflecting generally consistent receivables management, although occasional fluctuations suggest sensitivity to operational or market conditions affecting receivables collection.
Peer comparison
Dec 31, 2024