Chart Industries Inc (GTLS)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,032,900 | 2,546,800 | 2,140,800 | 1,710,400 | 1,594,000 | 1,542,100 | 1,458,600 | 1,372,300 | 1,307,700 | 1,241,200 | 1,181,300 | 1,165,200 | 1,190,400 | 1,220,400 | 1,304,000 | 1,307,300 | 1,280,700 | 1,228,400 | 1,145,600 | 1,476,200 |
| Receivables | US$ in thousands | 758,900 | 743,700 | 769,700 | 747,100 | 512,800 | 276,900 | 279,200 | 253,000 | 236,300 | 237,100 | 220,000 | 186,400 | 200,800 | 163,600 | 184,400 | 195,100 | 202,600 | 224,500 | 204,400 | 205,200 |
| Receivables turnover | 4.00 | 3.42 | 2.78 | 2.29 | 3.11 | 5.57 | 5.22 | 5.42 | 5.53 | 5.23 | 5.37 | 6.25 | 5.93 | 7.46 | 7.07 | 6.70 | 6.32 | 5.47 | 5.60 | 7.19 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,032,900K ÷ $758,900K
= 4.00
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by showing how many times a company collects its average accounts receivable balance during a certain period. In the case of Chart Industries Inc, the receivables turnover ratio has fluctuated over the past eight quarters.
In Q4 2023, the receivables turnover ratio was 2.70, indicating that the company collected its outstanding receivables approximately 2.70 times during that quarter. This represented an improvement from the previous quarter where the ratio was 2.35.
The trend over the past year shows some volatility in the receivables turnover ratio, with the ratio ranging from 1.58 in Q1 2023 to 3.92 in Q3 2022. A higher turnover ratio typically indicates that a company is efficiently collecting its receivables, while a lower ratio may suggest issues with collections or an inefficient accounts receivable management process.
Overall, the analysis of Chart Industries Inc's receivables turnover indicates some fluctuations in the efficiency of collecting outstanding receivables. It would be important for the company to closely monitor and improve its accounts receivable management practices to ensure a consistent and optimal turnover ratio.