Dorian LPG Ltd (LPG)
Receivables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 353,341 | 560,717 | 389,749 | 274,221 | 315,939 |
| Receivables | US$ in thousands | 1,357 | 53,013 | 58,636 | 56,394 | 56,394 |
| Receivables turnover | 260.38 | 10.58 | 6.65 | 4.86 | 5.60 |
March 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $353,341K ÷ $1,357K
= 260.38
The receivables turnover for Dorian LPG Ltd has shown fluctuations over the years as follows: 5.6 in 2021, 4.86 in 2022, 6.65 in 2023, 10.58 in 2024, and a significant increase to 260.38 in 2025. The receivables turnover ratio measures how efficiently the company is able to collect cash from its credit customers during a specific period.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. In the case of Dorian LPG Ltd, the drastic increase in the ratio from 10.58 in 2024 to 260.38 in 2025 suggests a substantial improvement in the company's receivables management during that year.
It is important to note that a very high receivables turnover ratio, like the one seen in 2025, may be a sign of overly aggressive credit collection policies or potential reporting errors. Further analysis into the reasons behind this significant increase is recommended to ensure the sustainable and healthy management of the company's receivables.