GE Aerospace (GE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,954,000 | 58,100,000 | 74,196,000 | 75,833,000 | 90,221,000 |
| Receivables | US$ in thousands | 15,466,000 | 14,831,000 | 15,620,000 | 16,691,000 | 27,047,000 |
| Receivables turnover | 4.39 | 3.92 | 4.75 | 4.54 | 3.34 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $67,954,000K ÷ $15,466,000K
= 4.39
The receivables turnover ratio for General Electric Co. has exhibited some fluctuation over the past five years. In 2023, the company's receivables turnover ratio was 4.39, showing an increase from the previous year's ratio of 4.26 in 2022. This implies that in 2023, General Electric Co. collected its accounts receivable 4.39 times during the year, compared to 4.26 times in the previous year.
The upward trend in the receivables turnover ratio from 2020 to 2021 indicates that the company improved its efficiency in collecting receivables during that period. However, in 2022, there was a slight dip in the ratio before increasing again in 2023.
Overall, a higher receivables turnover ratio suggests that General Electric Co. is more effective in collecting payments from customers, which is a positive indicator of the company's liquidity and operational efficiency. However, it is important to analyze other factors alongside the receivables turnover ratio to gain a comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023