Warrior Met Coal Inc (HCC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,703,690 | 1,735,450 | 1,045,640 | 784,294 | 1,279,610 |
| Receivables | US$ in thousands | 110,437 | 155,463 | 130,141 | 88,440 | 114,243 |
| Receivables turnover | 15.43 | 11.16 | 8.03 | 8.87 | 11.20 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,703,690K ÷ $110,437K
= 15.43
Over the past five years, Warrior Met Coal Inc's receivables turnover ratio has shown fluctuating performance. The ratio has steadily improved from 8.85 in 2020 to 15.18 in 2023, indicating that the company's efficiency in collecting receivables has increased significantly. A higher receivables turnover ratio suggests that the company is able to collect outstanding receivables more quickly, which can improve cash flow and liquidity.
In 2021, the receivables turnover ratio was 8.14, which was the lowest among the five years analyzed. This could indicate that the company experienced challenges in efficiently collecting receivables during that period. However, the subsequent improvement in the ratio in the following years suggests that the company took measures to enhance its receivables management practices.
Overall, Warrior Met Coal Inc's trend of increasing receivables turnover ratio is a positive indicator of the company's effectiveness in managing its accounts receivables and converting them into cash promptly. A higher turnover ratio is generally preferable as it indicates that the company is efficiently managing its credit sales and reducing the risk of bad debts.
Peer comparison
Dec 31, 2023