Innospec Inc (IOSP)

Receivables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 1,845,600 1,873,500 1,894,100 1,939,500 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
Receivables US$ in thousands 341,700 327,600 300,300 318,200 359,800 305,200 310,900 342,400 334,600 342,500 339,900 337,700 284,500 302,800 281,600 247,900 221,400 206,200 213,400 296,300
Receivables turnover 5.40 5.72 6.31 6.10 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

December 31, 2024 calculation

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

The receivables turnover for Innospec Inc shows fluctuation over the period from March 31, 2020, to December 31, 2024. The turnover ratio indicates how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio suggests that the company is collecting its outstanding receivables more quickly.

Innospec's receivables turnover ranged from a low of 4.51 in June 30, 2021, to a high of 6.48 in June 30, 2023. Generally, a decline in receivables turnover may indicate potential issues with collecting accounts receivable, which could lead to liquidity problems. Conversely, a significant increase in turnover may signal an improvement in the company's collection efficiency.

It is essential for Innospec Inc to closely monitor its receivables turnover ratio to ensure that it maintains a balance between extending credit to customers and collecting receivables efficiently. Analyzing trends in receivables turnover can provide valuable insights into the company's cash flow management and overall financial health.