Hexcel Corporation (HXL)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,888,400	1,867,500	1,822,700	1,775,500	1,758,000	1,725,300	1,669,300	1,608,300	1,541,500	1,472,400	1,441,000	1,367,900	1,286,400	1,231,100	1,184,000	1,241,000	1,470,000	1,738,500	2,022,800	2,251,900
Receivables	US$ in thousands	212,000	258,600	283,100	271,000	234,700	236,800	257,300	265,300	222,700	202,700	234,200	212,100	160,300	176,600	168,700	164,400	125,400	149,900	191,600	266,700
Receivables turnover		8.91	7.22	6.44	6.55	7.49	7.29	6.49	6.06	6.92	7.26	6.15	6.45	8.02	6.97	7.02	7.55	11.72	11.60	10.56	8.44

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,888,400K ÷ $212,000K
= 8.91

The receivables turnover ratio for Hexcel Corporation has fluctuated over the quarters in the period under consideration. The ratio ranged from a low of 6.06 on March 31, 2023, to a high of 11.72 on December 31, 2020. This indicates the number of times on average Hexcel collects its accounts receivable during a given period.

A higher receivables turnover ratio generally indicates better efficiency in collecting receivables, as it means the company is collecting outstanding payments more quickly. Conversely, a declining ratio may suggest potential issues with collecting payments from customers or an increase in the company's average collection period.

The decreasing trend in the receivables turnover ratio from 2020 to 2024 may be a cause for further investigation, as it could indicate difficulties in collecting receivables efficiently. Hexcel Corporation may need to reassess its credit policies, collection efforts, or customer payment terms to improve this ratio and ensure a healthy cash flow.