Kirby Corporation (KEX)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,047,860	2,748,750	2,210,980	2,171,410	2,838,400
Receivables	US$ in thousands	662,991	622,906	417,958	315,283	379,174
Receivables turnover		4.60	4.41	5.29	6.89	7.49

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,047,860K ÷ $662,991K
= 4.60

The receivables turnover ratio for Kirby Corp. has fluctuated over the past five years. In 2019, the company had a high receivables turnover of 5.87, indicating that it collected its accounts receivable approximately 5.87 times during the year. This ratio decreased to 3.62 in 2020, suggesting a slower collection of receivables. However, over the next three years, there was an increasing trend in the receivables turnover ratio, reaching 5.34 in 2023.

A higher receivables turnover ratio generally indicates that a company is more efficient in collecting payments from its customers, which is a positive sign for cash flow and working capital management. It implies that Kirby Corp. has been improving its receivables collection efficiency in recent years, which can lead to better liquidity and financial health. However, it is essential to monitor this ratio continuously to ensure that the trend remains positive and in line with the company's overall financial objectives.