Liberty Oilfield Services Inc (LBRT)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,315,160 | 4,747,930 | 4,149,230 | 2,470,780 | 965,787 |
| Receivables | US$ in thousands | 185,210 | 188,940 | 586,012 | 407,454 | 338,657 |
| Receivables turnover | 23.30 | 25.13 | 7.08 | 6.06 | 2.85 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,315,160K ÷ $185,210K
= 23.30
Receivables turnover is a crucial financial metric that reflects how efficiently a company is collecting payments from its customers. Looking at the data provided for Liberty Oilfield Services Inc, the trend in receivables turnover has shown significant improvement over the years.
In 2020, the receivables turnover ratio stood at 2.85, indicating that the company collected its accounts receivables approximately 2.85 times during the year. This ratio increased notably to 6.06 in 2021, demonstrating a much quicker collection of receivables.
The trend continued to improve in the subsequent years, with the receivables turnover ratio reaching 7.08 by the end of 2022. This suggests that the company's collection process became even more efficient.
By the end of 2023, the receivables turnover ratio spiked to 25.13, indicating a significant enhancement in the company's ability to convert receivables into cash. The efficiency in collecting payments further improved in 2024, with a slightly lower but still strong ratio of 23.30.
Overall, the increasing trend in Liberty Oilfield Services Inc's receivables turnover reflects a proactive approach to managing accounts receivables and highlights the company's effectiveness in converting credit sales into cash. This improvement indicates strong liquidity management and efficient credit control, which can positively impact the company's cash flow and working capital position.
Peer comparison
Dec 31, 2024