Mettler-Toledo International Inc (MTD)

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	3,788,309	3,910,997	3,954,381	3,950,651	3,919,704	3,899,264	3,865,368	3,811,332	3,717,931	3,618,676	3,474,083	3,240,405	3,085,177	2,991,160	2,937,669	2,978,362	3,008,652	2,982,607	2,963,587	2,954,217
Receivables	US$ in thousands	663,893	634,967	648,002	640,050	709,321	611,399	626,593	617,880	647,335	603,364	600,191	574,418	593,809	521,777	490,429	518,556	566,256	503,247	498,723	489,281
Receivables turnover		5.71	6.16	6.10	6.17	5.53	6.38	6.17	6.17	5.74	6.00	5.79	5.64	5.20	5.73	5.99	5.74	5.31	5.93	5.94	6.04

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,788,309K ÷ $663,893K
= 5.71

The receivables turnover ratio for Mettler-Toledo International, Inc. fluctuated over the past eight quarters, ranging from a low of 5.53 in Q4 2022 to a high of 6.38 in Q3 2022. The average receivables turnover ratio over the period was approximately 6.09.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. This may be a positive sign of strong credit control and effective management of outstanding customer balances.

Conversely, a lower receivables turnover ratio could suggest issues with collection processes or potential credit risks. However, in the context of Mettler-Toledo International, Inc., the variations in the ratio seem to be within a reasonable range, indicating overall stability in managing receivables.

It is essential for the company to monitor receivables turnover consistently to ensure that it maintains an optimal balance between collecting receivables promptly while maintaining good customer relations.