International Flavors & Fragrances Inc (IFF)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,002,000 | 12,118,000 | 11,368,000 | 4,948,650 | 4,999,500 |
| Receivables | US$ in thousands | 1,726,000 | 1,818,000 | 1,906,000 | 929,000 | 876,197 |
| Receivables turnover | 6.37 | 6.67 | 5.96 | 5.33 | 5.71 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,002,000K ÷ $1,726,000K
= 6.37
The receivables turnover ratio for International Flavors & Fragrances Inc. has shown a consistent improvement over the past five years, increasing from 5.02 in 2019 to 6.00 in 2023. This indicates that the company is able to collect its accounts receivable more efficiently in recent years.
A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more quickly, which can help improve cash flows and working capital management. It may also indicate effective credit policies in place or a more efficient collection process.
The trend of improving receivables turnover ratio is generally viewed positively by investors and creditors as it indicates better liquidity and potentially lower credit risk. However, it's important to consider other factors such as industry norms and company-specific circumstances in interpreting the significance of this ratio.
Overall, the increasing trend in International Flavors & Fragrances Inc.'s receivables turnover ratio reflects positively on the company's ability to efficiently manage its accounts receivable and convert them into cash.
Peer comparison
Dec 31, 2023