MSA Safety (MSA)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,787,650	1,527,950	1,400,180	1,348,220	1,401,980
Receivables	US$ in thousands	307,590	336,028	284,022	278,468	268,154
Receivables turnover		5.81	4.55	4.93	4.84	5.23

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,787,650K ÷ $307,590K
= 5.81

The receivables turnover ratio for MSA Safety Inc has shown variations over the past five years, ranging from 4.79 to 5.81. The ratio indicates how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio generally suggests a shorter time to collect receivables, which is favorable as it implies better liquidity and lower risk of bad debts.

In this case, the receivables turnover ratio has generally been around 5 times over the years, indicating that MSA Safety Inc has been able to convert its accounts receivable into cash approximately 5 times a year on average. This level of turnover is relatively stable and reflects a consistent ability to manage receivables effectively.

It's essential to note that while a higher ratio is favorable, an extremely high ratio could indicate overly aggressive credit policies that may lead to potential liquidity issues or strained customer relationships. Conversely, a very low ratio may signify inefficiency in collecting payments or credit management problems.

Overall, the consistent range of the receivables turnover ratio for MSA Safety Inc indicates a stable and efficient accounts receivable management process, which is crucial for maintaining healthy cash flow and financial stability.