The Coca-Cola Company (KO)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	45,754,000	45,030,000	44,140,000	43,493,000	43,004,000	42,343,000	41,322,000	40,126,000	38,655,000	37,802,000	36,412,000	33,433,000	33,014,000	33,471,000	34,326,000	37,173,000	37,266,000	36,004,000	35,272,000	34,696,000
Receivables	US$ in thousands	3,410,000	3,495,000	3,970,000	4,599,000	3,487,000	3,994,000	—	—	3,512,000	—	—	—	3,144,000	3,827,000	3,849,000	4,430,000	3,971,000	4,353,000	4,888,000	3,852,000
Receivables turnover		13.42	12.88	11.12	9.46	12.33	10.60	—	—	11.01	—	—	—	10.50	8.75	8.92	8.39	9.38	8.27	7.22	9.01

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $45,754,000K ÷ $3,410,000K
= 13.42

The receivables turnover ratio for Coca-Cola Co has been fluctuating over the past 8 quarters, ranging from a low of 8.65 in Q1 2022 to a high of 13.42 in Q4 2023. This ratio indicates how efficiently the company is able to collect payments from its customers. A higher receivables turnover implies that the company is collecting payments more quickly, which can be a positive sign of strong customer credit policies and effective collection procedures.

The increasing trend in the receivables turnover ratio from Q1 2022 to Q4 2023 suggests an improvement in the company's efficiency in collecting outstanding receivables over time. This may indicate tightened credit policies or a more proactive approach to managing accounts receivable. On the other hand, fluctuations in the ratio may also reflect seasonal variations or changes in the company's customer base.

Overall, a higher receivables turnover ratio is generally favorable as it implies that the company is efficiently managing its accounts receivable and converting them into cash. However, it is essential to consider industry benchmarks and peer comparisons to gain a more comprehensive understanding of Coca-Cola Co's performance in this aspect.