Knowles Cor (KN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 707,600 | 764,700 | 868,100 | 764,300 | 854,800 |
| Receivables | US$ in thousands | 135,300 | 134,700 | 146,600 | 131,400 | 159,600 |
| Receivables turnover | 5.23 | 5.68 | 5.92 | 5.82 | 5.36 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $707,600K ÷ $135,300K
= 5.23
Receivables turnover is a liquidity ratio that measures how efficiently a company is able to collect cash from its credit sales. Knowles Corp's receivables turnover has experienced fluctuations over the past five years, ranging from 5.23 to 5.92.
A higher receivables turnover ratio indicates that the company is collecting payments more quickly from its customers, which is generally a positive sign of efficient management of accounts receivable. However, a declining trend in receivables turnover could be a cause for concern as it may indicate potential issues with collecting outstanding payments in a timely manner.
In the case of Knowles Corp, the slight fluctuations in the receivables turnover ratio suggest that the company's ability to collect cash from credit sales has remained relatively stable over the years, with a minor decrease observed in 2023 compared to the previous years.
It is important for the company to continue monitoring its receivables turnover ratio to ensure that it is maintaining an optimal balance between extending credit to customers and efficiently collecting payments to support its cash flow and overall financial health.
Peer comparison
Dec 31, 2023