FMC Corporation (FMC)
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 | 4,475,000 | 4,961,900 | 5,367,100 | 5,804,900 | 5,818,300 | 5,592,300 | 5,402,800 | 5,191,300 | 5,034,800 | 4,780,000 | 4,671,900 | 4,586,400 | 4,642,100 | 4,687,200 | 4,616,900 | 4,667,700 | 4,609,800 | 4,954,400 | 4,863,700 | 4,812,000 |
| Receivables | US$ in thousands | 2,703,200 | 2,564,500 | 2,782,800 | 3,202,100 | 2,871,400 | 2,599,900 | 2,885,100 | 2,868,600 | 2,583,700 | 2,503,500 | 2,627,300 | 2,532,800 | 2,330,300 | 2,137,900 | 2,342,400 | 2,460,100 | 2,231,200 | 2,001,100 | 2,384,000 | 2,530,200 |
| Receivables turnover | 1.66 | 1.93 | 1.93 | 1.81 | 2.03 | 2.15 | 1.87 | 1.81 | 1.95 | 1.91 | 1.78 | 1.81 | 1.99 | 2.19 | 1.97 | 1.90 | 2.07 | 2.48 | 2.04 | 1.90 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,475,000K ÷ $2,703,200K
= 1.66
The receivables turnover ratio for FMC Corp. has exhibited fluctuations over the past eight quarters. The ratio measures the company's efficiency in collecting outstanding receivables from its customers during a specific period.
In Q4 2023, the receivables turnover ratio decreased to 1.66 from 1.94 in Q3 2023. This decline may suggest that FMC Corp. took longer to collect payments from its customers at the end of the year compared to the previous quarter.
Looking at the trend from Q4 2022 to Q4 2023, we observe a general decrease in the receivables turnover ratio over the four quarters. This may indicate that FMC Corp. is experiencing challenges in collecting receivables efficiently, potentially leading to longer collection periods.
It is essential for FMC Corp. to monitor its receivables turnover ratio closely and assess the reasons behind any downward trends. Delays in receiving payments from customers could impact the company's cash flow and overall liquidity position. Implementing strategies to improve receivables management, such as tightening credit policies or enhancing collection processes, could help enhance the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023