Dorian LPG Ltd (LPG)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 560,717 | 389,749 | 274,221 | 315,939 | 333,430 |
| Receivables | US$ in thousands | 53,013 | 76,352 | 58,636 | 56,394 | 67,669 |
| Receivables turnover | 10.58 | 5.10 | 4.68 | 5.60 | 4.93 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $560,717K ÷ $53,013K
= 10.58
The receivables turnover of Dorian LPG Ltd has shown an increasing trend over the past five years, indicating the company's ability to efficiently collect its outstanding receivables from customers. The ratio has improved from 4.93 in 2020 to 10.58 in 2024, signaling that the company has become more effective in converting its credit sales into cash. This suggests that Dorian LPG Ltd has been managing its accounts receivables more efficiently, possibly through better credit policies, improved collection procedures, or stronger customer relationships. A higher receivables turnover ratio is generally favorable as it reflects a shorter time taken by the company to collect outstanding payments, thereby boosting liquidity and cash flow. Overall, the upward trend in Dorian LPG Ltd's receivables turnover indicates improving efficiency in its receivables management.