Howmet Aerospace Inc (HWM)
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 | 6,433,000 | 6,183,000 | 5,969,000 | 5,711,000 | 5,433,000 | 5,204,000 | 4,929,000 | 4,699,000 | 4,565,000 | 4,582,000 | 4,540,000 | 4,551,000 | 6,523,000 | 8,686,000 | 11,183,000 | 13,758,000 | 14,192,000 | 14,263,000 | 14,228,000 | 14,110,000 |
| Receivables | US$ in thousands | 692,000 | 727,000 | 671,000 | 671,000 | 537,000 | 600,000 | 550,000 | 529,000 | 420,000 | 465,000 | 416,000 | 435,000 | 598,000 | 430,000 | 527,000 | 1,534,000 | 1,451,000 | 1,773,000 | 1,795,000 | 1,816,000 |
| Receivables turnover | 9.30 | 8.50 | 8.90 | 8.51 | 10.12 | 8.67 | 8.96 | 8.88 | 10.87 | 9.85 | 10.91 | 10.46 | 10.91 | 20.20 | 21.22 | 8.97 | 9.78 | 8.04 | 7.93 | 7.77 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,433,000K ÷ $692,000K
= 9.30
The receivables turnover ratio for Howmet Aerospace Inc has been relatively stable over the past eight quarters, ranging from a low of 8.83 to a high of 10.55. This ratio measures how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
Based on the trend observed, the receivables turnover ratio experienced a slight dip in Q3 2023 compared to the previous quarter but rebounded in Q4 2023 to 9.60. The company's ability to collect its receivables improved from the recent low in Q3 2022 at 9.06 to the recent high in Q4 2022 at 10.55.
Overall, a consistent and relatively high receivables turnover ratio suggests that Howmet Aerospace Inc has been effectively managing its accounts receivable and converting them into cash. However, it is essential to continue monitoring this ratio to ensure that the trend remains stable and in line with industry benchmarks.
Peer comparison
Dec 31, 2023