International Business Machines (IBM)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 62,753,000 | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 |
| Receivables | US$ in thousands | 7,642,000 | 7,725,000 | 14,209,000 | 14,977,000 | 18,738,000 |
| Receivables turnover | 8.21 | 8.01 | 4.26 | 3.83 | 2.94 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $62,753,000K ÷ $7,642,000K
= 8.21
The receivables turnover for International Business Machines has shown a positive trend over the past five years, increasing from 2.94 in December 2020 to 8.21 in December 2024. This indicates that the company's efficiency in collecting outstanding receivables has improved significantly. The sharp increase in receivables turnover from 2023 to 2024 shows a substantial enhancement in the company's ability to convert its receivables into cash quickly. A high receivables turnover ratio suggests that IBM has been effectively managing its accounts receivables and is efficient in converting credit sales into cash. Overall, the trend in receivables turnover reflects positively on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024