Hexcel Corporation (HXL)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,758,000	1,541,500	1,286,400	1,460,600	2,310,200
Receivables	US$ in thousands	234,700	222,700	160,300	125,400	227,600
Receivables turnover		7.49	6.92	8.02	11.65	10.15

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,758,000K ÷ $234,700K
= 7.49

From the data provided, we observe that Hexcel Corp.'s receivables turnover ratio has fluctuated over the past five years. The receivables turnover ratio measures how efficiently a company is able to collect cash from its credit sales within a specific period.

In 2023, the receivables turnover ratio for Hexcel Corp. was 7.62, which indicates that the company collected its outstanding receivables approximately 7.62 times during the year. This was an improvement compared to the previous year's ratio of 7.08.

Although the ratio decreased from the peak of 11.98 in 2020, it remained higher than the ratios reported in 2019 and 2021. This suggests that Hexcel Corp. has been successful in managing its accounts receivable turnover and collecting outstanding balances efficiently in recent years.

Overall, the trend in Hexcel Corp.'s receivables turnover reflects a solid performance in managing its receivables and converting credit sales into cash, but fluctuations in the ratio over the years indicate potential changes in the company's credit policies or customer payment behavior that may warrant further investigation.