LyondellBasell Industries NV (LYB)

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	41,107,000	41,384,000	43,009,000	47,541,000	50,451,000	53,075,000	53,525,000	50,248,000	46,173,000	41,280,000	35,356,000	29,341,000	27,753,000	27,995,000	29,941,000	33,443,000	34,727,000	35,424,000	36,857,000	38,015,000
Receivables	US$ in thousands	476,000	-6,000	3,811,000	3,901,000	4,081,000	4,329,000	5,407,000	5,391,000	5,212,000	5,251,000	4,897,000	3,961,000	4,489,000	2,974,000	2,588,000	3,043,000	3,455,000	3,469,000	3,758,000	3,680,000
Receivables turnover		86.36	—	11.29	12.19	12.36	12.26	9.90	9.32	8.86	7.86	7.22	7.41	6.18	9.41	11.57	10.99	10.05	10.21	9.81	10.33

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $41,107,000K ÷ $476,000K
= 86.36

The receivables turnover ratio measures how efficiently a company is able to collect cash from its credit sales. A higher receivables turnover ratio indicates better efficiency in collecting receivables.

Analyzing the data provided for LyondellBasell Industries NV over the past eight quarters, we observe that the receivables turnover has fluctuated within a range. In Q1 2023, the receivables turnover was at its lowest at 12.19, gradually declining from the previous quarter. This decline continued until it reached a low of 9.32 in Q1 2022. However, the turnover ratio then started to improve, reaching a peak of 12.36 in Q4 2022.

Overall, the company has exhibited relatively stable receivables turnover performance over the past two years, with some fluctuations. Although the ratio has dipped at times, it has generally remained above 10, indicating that LyondellBasell Industries NV efficiently collects cash from its credit sales. It is essential for the company to monitor and manage its receivables turnover to ensure a healthy cash flow and effective credit management.