GE Aerospace (GE)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 38,703,000 | 37,347,000 | 36,807,000 | 36,468,000 | 41,999,000 | 49,371,000 | 54,539,000 | 59,911,000 | 58,100,000 | 61,575,000 | 65,674,000 | 69,800,000 | 74,196,000 | 74,926,000 | 74,966,000 | 73,524,000 | 75,833,000 | 76,045,000 | 80,796,000 | 87,399,000 |
| Receivables | US$ in thousands | 9,327,000 | 8,936,000 | 8,370,000 | 15,100,000 | 8,703,000 | 14,546,000 | 14,767,000 | 14,212,000 | 14,831,000 | 17,197,000 | 16,283,000 | 16,050,000 | 15,620,000 | 15,145,000 | 15,506,000 | 15,687,000 | 16,691,000 | 17,302,000 | 16,041,000 | 27,427,000 |
| Receivables turnover | 4.15 | 4.18 | 4.40 | 2.42 | 4.83 | 3.39 | 3.69 | 4.22 | 3.92 | 3.58 | 4.03 | 4.35 | 4.75 | 4.95 | 4.83 | 4.69 | 4.54 | 4.40 | 5.04 | 3.19 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $38,703,000K ÷ $9,327,000K
= 4.15
The GE Aerospace receivables turnover ratio, calculated by dividing the net credit sales by the average accounts receivable balance, provides insight into how efficiently the company is collecting payments from its customers.
From March 31, 2020, to December 31, 2024, the receivables turnover ratio fluctuated between 2.42 and 5.04. Overall, the trend shows some variability but generally maintains a range around 4, indicating an average collection period of around 3 months.
The ratio peaked at 5.04 in June 30, 2020, suggesting a more efficient collection process at that time. However, it decreased to a low of 2.42 on March 31, 2024, signaling a potential slowdown in collections efficiency.
The company should aim to consistently maintain a healthy receivables turnover ratio to ensure timely collection of outstanding debts and efficient management of cash flow. Further analysis over time and comparison with industry benchmarks can provide additional insights into the effectiveness of GE Aerospace's accounts receivable management.
Peer comparison
Dec 31, 2024