Frontier Communications Parent Inc (FYBR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,751,000 | 5,787,000 | 6,411,000 | 7,155,000 | 8,107,000 |
| Receivables | US$ in thousands | 446,000 | 456,000 | 458,000 | 553,000 | 700,000 |
| Receivables turnover | 12.89 | 12.69 | 14.00 | 12.94 | 11.58 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,751,000K ÷ $446,000K
= 12.89
Receivables turnover measures how efficiently a company is able to collect outstanding receivables during a specific period. Frontier Communications Parent Inc's receivables turnover has been relatively stable over the past five years, ranging from 11.58 to 14.00 times.
The higher the receivables turnover ratio, the better, as it indicates that the company is collecting its accounts receivable more quickly. In this case, Frontier Communications Parent Inc has consistently maintained a healthy receivables turnover ratio above 11 times, which suggests that the company has been successful in managing its accounts receivable effectively.
A higher receivables turnover ratio can also indicate good customer credit policies or efficient collections processes. Conversely, a declining ratio over time may indicate issues with credit policies or difficulties in collecting outstanding payments.
Overall, based on the trend in the receivables turnover ratio for Frontier Communications Parent Inc, the company demonstrates good efficiency in collecting accounts receivable, which is a positive indicator of its financial health and operational effectiveness.
Peer comparison
Dec 31, 2023