Innospec Inc (IOSP)

Receivables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,845,600 1,948,800 1,963,700 1,483,400 1,192,300
Receivables US$ in thousands 341,700 359,800 334,600 284,500 221,400
Receivables turnover 5.40 5.42 5.87 5.21 5.39

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,845,600K ÷ $341,700K
= 5.40

The receivables turnover ratio for Innospec Inc has shown a relatively consistent performance over the past five years. It stood at 5.39 in December 31, 2020, and slightly decreased to 5.21 by December 31, 2021. However, the ratio rebounded in the following years, reaching 5.87 by December 31, 2022, and maintaining a relatively stable level around 5.4 in the subsequent years. This indicates that, on average, Innospec Inc is collecting its accounts receivable approximately 5.4 to 5.9 times a year, reflecting efficient management of credit sales and collection processes. Overall, the company has been able to effectively convert its accounts receivable into cash, demonstrating a healthy liquidity position and effective credit control measures.