Hexcel Corporation (HXL)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,903,000 | 1,758,000 | 1,541,500 | 1,286,400 | 1,460,600 |
| Receivables | US$ in thousands | 212,000 | 234,700 | 222,700 | 160,300 | 125,400 |
| Receivables turnover | 8.98 | 7.49 | 6.92 | 8.02 | 11.65 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,903,000K ÷ $212,000K
= 8.98
The receivables turnover ratio for Hexcel Corporation has shown a decreasing trend over the past five years, declining from 11.65 in 2020 to 8.98 in 2024. This indicates that the company is taking longer to collect its accounts receivable, which may suggest potential issues with credit policies, collection efforts, or the quality of customers. A lower receivables turnover ratio could also imply that the company's sales are being made on credit to customers who may be taking longer to pay.
It is important for Hexcel Corporation to closely monitor this ratio and take necessary steps to improve its collections process to ensure timely receipt of funds from customers. A declining receivables turnover ratio could lead to cash flow issues and increased credit risk for the company.
Peer comparison
Dec 31, 2024