GE Aerospace (GE)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 38,702,000 | 35,348,000 | 58,100,000 | 74,196,000 | 75,833,000 |
| Receivables | US$ in thousands | 9,327,000 | 8,703,000 | 14,831,000 | 15,620,000 | 16,691,000 |
| Receivables turnover | 4.15 | 4.06 | 3.92 | 4.75 | 4.54 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $38,702,000K ÷ $9,327,000K
= 4.15
The receivables turnover for GE Aerospace has shown a fluctuating trend over the past five years. In 2020, the turnover ratio was 4.54, indicating that the company collected its accounts receivable approximately 4.54 times during that year.
Subsequently, there was an increase in the receivables turnover ratio to 4.75 in 2021, suggesting an improvement in the efficiency of collecting receivables. However, the ratio decreased in 2022 to 3.92, which may raise concerns about the company's ability to efficiently collect outstanding receivables.
The ratio slightly improved in 2023 to 4.06 before increasing again to 4.15 in 2024. Despite the fluctuations, the overall trend indicates that GE Aerospace has been moderately effective in managing its accounts receivable turnover over the past five years. Further analysis of the underlying reasons for the fluctuations in the turnover ratio could provide insights into the company's receivables management strategies.
Peer comparison
Dec 31, 2024