Altria Group (MO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,494,000 | 24,038,000 | 24,202,000 | 24,944,000 | 23,830,000 |
| Receivables | US$ in thousands | 71,000 | 48,000 | 47,000 | 137,000 | 152,000 |
| Receivables turnover | 330.90 | 500.79 | 514.94 | 182.07 | 156.78 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $23,494,000K ÷ $71,000K
= 330.90
The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
In the case of Altria Group Inc., the receivables turnover ratio has exhibited significant fluctuations over the past five years. For example, in 2021, the ratio spiked to 553.47, indicating that the company collected its receivables at a very rapid pace that year. This could be due to various factors such as changes in sales practices, customer payment behavior, or credit policies.
On the other hand, in 2022, the receivables turnover ratio dropped to a relatively low level of 14.19, suggesting that the company took longer to collect payments from its customers compared to the previous year. This could raise concerns about the effectiveness of the company's credit and collection processes during that period.
Overall, the fluctuating nature of Altria Group Inc.'s receivables turnover ratio indicates varying levels of efficiency in managing its accounts receivable over the years. It would be important for investors and analysts to further investigate the reasons behind these fluctuations to assess the company's overall financial health and efficiency in managing working capital.
Peer comparison
Dec 31, 2023