Liberty Oilfield Services Inc (LBRT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,747,930 | 4,149,230 | 2,470,780 | 965,787 | 1,990,350 |
| Receivables | US$ in thousands | 188,940 | 586,012 | 407,454 | 338,657 | 252,910 |
| Receivables turnover | 25.13 | 7.08 | 6.06 | 2.85 | 7.87 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,747,930K ÷ $188,940K
= 25.13
Liberty Energy Inc's receivables turnover ratio has been showing an increasing trend over the past five years, indicating the company's efficiency in collecting outstanding receivables from its customers. The ratio has improved from 9.30 in 2019 to 11.91 in 2023. This suggests that the company is collecting its accounts receivable at a faster pace each year.
A higher receivables turnover ratio generally reflects a shorter collection period and better liquidity for the company. It signifies that Liberty Energy Inc is managing its credit policies effectively and has a strong ability to convert credit sales into cash. This can lead to improved cash flow and working capital management for the company.
Overall, the increasing trend in Liberty Energy Inc's receivables turnover ratio indicates a positive outlook for the company's financial health and operational efficiency in managing its accounts receivable over the years.
Peer comparison
Dec 31, 2023