Mercer International Inc (MERC)

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	1,902,412	2,022,817	2,095,191	2,150,228	2,225,984	2,170,471	2,102,894	1,921,045	1,713,879	1,611,455	1,462,773	1,394,244	1,358,964	1,291,941	1,356,264	1,439,936	1,568,676	1,576,750	1,533,582	1,482,235
Receivables	US$ in thousands	306,166	266,927	335,402	345,193	351,993	324,343	308,067	387,779	383,298	253,731	225,238	237,318	227,055	202,619	209,184	221,921	208,740	228,154	273,502	308,573
Receivables turnover		6.21	7.58	6.25	6.23	6.32	6.69	6.83	4.95	4.47	6.35	6.49	5.88	5.99	6.38	6.48	6.49	7.51	6.91	5.61	4.80

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,902,412K ÷ $306,166K
= 6.21

The receivables turnover ratio of Mercer International Inc. has shown fluctuation over the past eight quarters, ranging from 5.11 to 7.89. In Q3 2023, the ratio peaked at 7.89, indicating that the company collected its accounts receivables approximately 7.89 times during that quarter. This suggests a more efficient collection process compared to the other quarters, where the turnover ratio ranged from 5.11 to 6.99.

Generally, a higher receivables turnover ratio indicates that a company is more efficient in collecting payments from its customers. However, it is important to consider industry norms and trends when evaluating this ratio, as different industries may have varying collection practices and credit terms.

Mercer International Inc. should strive to maintain a consistent and healthy receivables turnover ratio to ensure a steady cash flow and minimize the risk of bad debt. Analyzing the factors contributing to the fluctuations in the ratio can help the company improve its receivables management practices and overall financial performance.