Mercer International Inc (MERC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Receivables | US$ in thousands | 306,166 | 351,993 | 383,298 | 227,055 | 208,740 |
| Receivables turnover | 6.21 | 6.32 | 4.47 | 5.85 | 7.36 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,902,410K ÷ $306,166K
= 6.21
Mercer International Inc.'s receivables turnover ratio has fluctuated over the past five years. The company's ability to collect receivables improved from 2019 to 2020, as the ratio increased from 9.41 to 6.75. However, in the following years, the ratio declined, reaching its lowest point in 2021 at 6.14. In the most recent year, 2023, the receivables turnover ratio slightly increased to 6.51.
A higher receivables turnover ratio generally indicates that the company is more efficient in collecting payments from its customers, whereas a lower ratio may suggest potential issues with collections or sales credit policies. In Mercer International Inc.'s case, the trend in the receivables turnover ratio reflects some variability in the company's collection efficiency over the years. This metric provides insights into the company's liquidity and the effectiveness of its credit management practices.