Itron Inc (ITRI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,167,720 | 1,788,240 | 1,881,840 | 2,072,330 | 2,450,020 |
| Receivables | US$ in thousands | 303,821 | 280,435 | 298,459 | 369,828 | 472,925 |
| Receivables turnover | 7.13 | 6.38 | 6.31 | 5.60 | 5.18 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,167,720K ÷ $303,821K
= 7.13
The receivables turnover ratio for Itron Inc. has shown a positive trend over the past five years, indicating an improvement in the efficiency of the company in collecting its accounts receivable. The ratio has increased from 5.29 in 2019 to 7.15 in 2023, suggesting that Itron Inc. has been able to collect its outstanding receivables more quickly.
A higher receivables turnover ratio is generally seen as favorable as it indicates that the company is able to convert its accounts receivable into cash more rapidly. This can be a sign of effective credit management practices, timely collection efforts, and strong customer relationships.
Overall, the increasing trend in the receivables turnover ratio for Itron Inc. suggests that the company has been managing its receivables efficiently and effectively over the years. It is important for the company to continue monitoring and improving its receivables turnover ratio to ensure continued financial health and liquidity.
Peer comparison
Dec 31, 2023