International Business Machines (IBM)
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 | 61,860,000 | 61,169,000 | 60,524,000 | 60,584,000 | 60,529,000 | 60,533,000 | 59,677,000 | 58,360,000 | 57,350,000 | 42,582,000 | 46,891,000 | 50,796,000 | 55,180,000 | 55,598,000 | 56,066,000 | 57,104,000 | 57,715,000 | 77,132,000 | 77,860,000 | 78,702,000 |
| Receivables | US$ in thousands | 7,725,000 | 6,039,000 | 6,368,000 | 12,626,000 | 14,209,000 | 6,289,000 | 6,626,000 | 13,725,000 | 14,977,000 | 14,669,000 | 15,823,000 | 16,067,000 | 18,738,000 | 17,870,000 | 19,447,000 | 20,669,000 | 23,795,000 | 20,959,000 | 24,738,000 | 27,945,000 |
| Receivables turnover | 8.01 | 10.13 | 9.50 | 4.80 | 4.26 | 9.63 | 9.01 | 4.25 | 3.83 | 2.90 | 2.96 | 3.16 | 2.94 | 3.11 | 2.88 | 2.76 | 2.43 | 3.68 | 3.15 | 2.82 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $61,860,000K ÷ $7,725,000K
= 8.01
The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher ratio indicates that the company is collecting its accounts receivable more quickly.
Looking at the data for International Business Machines Corp. over the past eight quarters, we can see some fluctuations in the receivables turnover ratio. The ratio has ranged from 7.33 to 9.91, with Q3 2023 showing the highest turnover at 9.91 and Q4 2023 at 7.88, the lowest in the period.
Analyzing the trend, we can observe an overall improvement in the company's receivables turnover over the past eight quarters. Despite some fluctuations, the ratio has generally been increasing, indicating that IBM has been more effectively collecting payments from its customers.
A high and increasing receivables turnover ratio suggests that IBM's credit policies are effective, and it is managing its accounts receivable efficiently. However, it is essential to consider other factors alongside the receivables turnover ratio to assess the overall financial health of the company.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Receivables Turnover (Quarterly Data)