Expeditors International of Washington Inc (EXPD)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,280,370	17,046,400	16,511,700	10,091,100	8,166,180
Receivables	US$ in thousands	1,532,600	2,107,640	3,810,290	1,998,060	1,315,090
Receivables turnover		6.06	8.09	4.33	5.05	6.21

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,280,370K ÷ $1,532,600K
= 6.06

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a period. A higher turnover ratio indicates a more efficient collection process.

In the case of Expeditors International Of Washington, Inc., there has been fluctuation in the receivables turnover ratio over the past five years. The ratio was at its highest in 2022 at 8.10, indicating that the company collected its receivables more frequently during that year. This suggests effective management in collecting outstanding payments from customers.

In 2021, the receivables turnover ratio decreased to 4.34, showing a decline in the efficiency of collecting accounts receivable compared to the previous year. However, the ratio improved in 2023 compared to 2021, reaching 6.07, which implies a better collection performance.

Overall, Expeditors International Of Washington, Inc. has shown varying levels of efficiency in collecting accounts receivable over the past five years, with fluctuations in the turnover ratio. Further analysis and comparison with industry benchmarks could provide additional insights into the company's receivables management performance.