Gates Industrial Corporation plc (GTES)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 | 3,087,100 |
| Receivables | US$ in thousands | 798,600 | 821,600 | 727,200 | 723,600 | 716,800 |
| Receivables turnover | 4.47 | 4.33 | 4.78 | 3.86 | 4.31 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,570,200K ÷ $798,600K
= 4.47
The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales within a given period. Gates Industrial Corporation plc's receivables turnover ratio has been relatively stable over the past five years, ranging from 3.86 to 4.78.
In 2023, the company's receivables turnover ratio was 4.47, indicating that Gates Industrial Corporation plc collected its receivables approximately 4.47 times during the year. This implies that, on average, it takes around 81 days (365 days divided by 4.47) for the company to collect its accounts receivable.
A higher receivables turnover ratio generally suggests that the company is effectively managing its accounts receivable and converting them into cash quickly. Conversely, a lower ratio could indicate potential issues with collecting outstanding debts.
Overall, Gates Industrial Corporation plc's consistent and moderate receivables turnover ratios over the past few years suggest a relatively efficient accounts receivable management process. However, it would be beneficial to compare these ratios with industry benchmarks for a more comprehensive evaluation of the company's performance in this area.
Peer comparison
Dec 31, 2023