The Coca-Cola Company (KO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 45,754,000 | 43,004,000 | 38,655,000 | 33,014,000 | 37,266,000 |
| Receivables | US$ in thousands | 3,410,000 | 3,487,000 | 3,512,000 | 3,144,000 | 3,971,000 |
| Receivables turnover | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $45,754,000K ÷ $3,410,000K
= 13.42
Coca-Cola Co's receivables turnover has shown a consistent improvement over the past five years, indicating the company's ability to efficiently collect outstanding receivables from customers. The receivables turnover ratio has increased from 9.38 in 2019 to 13.42 in 2023, suggesting that the company is managing its receivables more effectively and converting credit sales into cash at a faster rate.
A higher receivables turnover ratio reflects that Coca-Cola Co is collecting payments from its customers more quickly, reducing the risk of bad debts and improving cash flow. This trend may signify effective credit control measures, timely invoicing, and strong customer relationships. The company's ability to turn its accounts receivable into cash implies a healthy liquidity position and operational efficiency in managing its receivables.
Overall, the increasing trend in receivables turnover for Coca-Cola Co is a positive indicator of the company's financial health and efficiency in managing its receivables, which could lead to improved profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2023