Flowserve Corporation (FLS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,277,980 | 3,600,590 | 3,412,060 | 3,653,870 | 3,909,500 |
| Receivables | US$ in thousands | 895,928 | 884,663 | 763,404 | 757,745 | 795,538 |
| Receivables turnover | 4.77 | 4.07 | 4.47 | 4.82 | 4.91 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,277,980K ÷ $895,928K
= 4.77
Flowserve Corp.'s receivables turnover has fluctuated over the past five years, ranging from a low of 4.16 in 2022 to a high of 4.96 in 2019. The company's ability to collect its accounts receivable has generally been consistent, with the ratio hovering around 4.9 in recent years. This indicates that, on average, Flowserve Corp. is able to convert its accounts receivable into cash almost five times a year. A higher turnover ratio suggests that the company is efficient in collecting payments from its customers, while a lower ratio may indicate potential issues with credit policies or collection processes. Overall, Flowserve Corp.'s receivables turnover ratio appears stable, reflecting a reasonable level of efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023