Chart Industries Inc (GTLS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,031,500 | 1,594,000 | 1,300,300 | 1,389,800 | 1,274,000 |
| Receivables | US$ in thousands | 758,900 | 512,800 | 236,300 | 200,800 | 202,600 |
| Receivables turnover | 3.99 | 3.11 | 5.50 | 6.92 | 6.29 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,031,500K ÷ $758,900K
= 3.99
Based on the data provided, the receivables turnover ratio for Chart Industries Inc has been declining over the past five years. In 2019, the company had a receivables turnover ratio of 4.50, indicating that on average, the company collected its accounts receivable approximately 4.50 times during the year. However, this ratio has decreased to 2.70 in 2023.
A declining receivables turnover ratio could suggest that the company is taking longer to collect its accounts receivable, which may raise concerns about the efficiency of its credit and collection policies. A lower receivables turnover ratio could also indicate that the company may be facing difficulties in managing its accounts receivable or that its customers are taking longer to pay their invoices.
It is important for Chart Industries Inc to closely monitor its receivables turnover ratio and take steps to improve efficiency in collecting its accounts receivable. This could involve reviewing credit policies, addressing overdue accounts, or implementing better collection practices to ensure a healthy cash flow and overall financial stability.