Innovex International, Inc (INVX)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	660,803	424,060	467,189	294,841	364,973
Receivables	US$ in thousands	266,343	118,360	126,234	82,665	256,520
Receivables turnover		2.48	3.58	3.70	3.57	1.42

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $660,803K ÷ $266,343K
= 2.48

The receivables turnover ratio of Innovex International, Inc. demonstrates notable fluctuation over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio stood at 1.42, indicating a relatively low level of efficiency in collecting accounts receivable during that year. This figure significantly increased to 3.57 by December 31, 2021, reflecting an improvement in the company's ability to convert receivables into cash more rapidly.

This upward trend persisted into 2022, with the ratio slightly rising to 3.70, suggesting continued efficiency gains in receivables management. However, a marginal decline is observed in the subsequent year, 2023, with the ratio decreasing to 3.58. While still higher than the 2020 level, this small reduction could indicate a slight slowdown in collection effectiveness or changes in credit policies.

The most pronounced change occurs in 2024, where the receivables turnover ratio drops to 2.48. This decrease signifies a marked decline in the company's collection efficiency during that year. A lower ratio could suggest increased credit extension, potential difficulties in collection, or strategic changes affecting receivables management.

Overall, the trend reflects an initial period of improvement in receivables management from 2020 to 2022, followed by stability and a slight decline in 2023, culminating in a significant decrease in 2024. This pattern warrants further investigation into the underlying causes, such as changes in credit policies, customer payment behaviors, or market conditions, to better understand the implications for the company’s liquidity and operational efficiency.