Mettler-Toledo International Inc (MTD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,788,310 | 3,919,710 | 3,717,930 | 3,085,180 | 3,008,650 |
| Receivables | US$ in thousands | 663,893 | 709,321 | 647,335 | 593,809 | 566,256 |
| Receivables turnover | 5.71 | 5.53 | 5.74 | 5.20 | 5.31 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,788,310K ÷ $663,893K
= 5.71
The receivables turnover ratio for Mettler-Toledo International, Inc. has shown fluctuations over the past five years. The company's ability to collect its accounts receivable has improved from 5.31 in 2019 to 5.74 in 2021 before slightly decreasing to 5.53 in 2022 and 5.71 in 2023.
A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more frequently during the year, which can be a positive sign of efficient credit management and effective collection practices. This trend suggests that Mettler-Toledo International, Inc. has been successful in converting its accounts receivable into cash in recent years.
However, it is important to note that the slight decrease in 2022 followed by a small increase in 2023 could indicate potential changes in the company's credit policies or the creditworthiness of its customers. It would be beneficial for the company to continue monitoring and managing its accounts receivable effectively to ensure a healthy cash flow and minimize the risk of bad debts.
Peer comparison
Dec 31, 2023