Innospec Inc (IOSP)
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 | 1,948,800 | 1,964,800 | 2,013,700 | 2,000,900 | 1,963,700 | 1,866,200 | 1,729,300 | 1,616,200 | 1,483,400 | 1,380,200 | 1,269,200 | 1,159,600 | 1,192,200 | 1,272,800 | 1,379,600 | 1,497,100 | 1,513,000 | 1,511,400 | 1,502,600 | 1,498,300 |
| Receivables | US$ in thousands | 359,800 | 305,200 | 310,900 | 342,400 | 334,600 | 342,500 | 339,900 | 337,700 | 284,500 | 302,800 | 281,600 | 247,900 | 221,400 | 206,200 | 213,400 | 296,300 | 292,000 | 296,500 | 280,000 | 296,700 |
| Receivables turnover | 5.42 | 6.44 | 6.48 | 5.84 | 5.87 | 5.45 | 5.09 | 4.79 | 5.21 | 4.56 | 4.51 | 4.68 | 5.38 | 6.17 | 6.46 | 5.05 | 5.18 | 5.10 | 5.37 | 5.05 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,948,800K ÷ $359,800K
= 5.42
The receivables turnover ratio for Innospec Inc has shown variability over the past eight quarters. In Q2 and Q3 of 2023, the company experienced the highest turnover at 6.48 and 6.44 times respectively, indicating that it collected its accounts receivable more frequently during these periods. This is a positive sign of efficiency in collecting payments from customers.
In contrast, the turnover ratios in Q1 and Q4 of 2022 were lower at 4.79 and 5.87 times respectively, suggesting a slower collection process during these quarters. Despite the fluctuations, the overall trend seems to be an improvement in receivables turnover over time, with Q2 and Q3 of 2023 performing particularly well.
A higher receivables turnover ratio generally indicates that a company is effectively managing its accounts receivable and converting credit sales into cash faster. It is crucial for maintaining healthy cash flow and liquidity. Innospec Inc should continue to monitor and strive to maintain a consistent and improving receivables turnover ratio to ensure efficient management of its accounts receivable.
Peer comparison
Dec 31, 2023