Materion Corporation (MTRN)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,640,521 | 1,651,211 | 1,609,993 | 1,574,968 | 1,633,620 | 1,648,357 | 1,675,646 | 1,725,472 | 1,735,899 | 2,803,789 | 2,384,788 | 1,947,417 | 1,504,455 | 348,644 | 352,178 | 357,767 | 364,481 | 304,953 | 315,512 | 325,994 |
| Receivables | US$ in thousands | 193,793 | 214,576 | 185,244 | 188,282 | 192,747 | 186,177 | 188,166 | 207,998 | 215,211 | 238,975 | — | — | 223,553 | — | — | — | 166,447 | 150,454 | 146,527 | 138,803 |
| Receivables turnover | 8.47 | 7.70 | 8.69 | 8.36 | 8.48 | 8.85 | 8.91 | 8.30 | 8.07 | 11.73 | — | — | 6.73 | — | — | — | 2.19 | 2.03 | 2.15 | 2.35 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,640,521K ÷ $193,793K
= 8.47
The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting payments more quickly.
Looking at Materion Corporation's receivables turnover ratio over the past few years, we see fluctuations in the ratio. In March 2020, the ratio was 2.35, which means that on average, the company collected its accounts receivable 2.35 times during the year. This ratio decreased to 2.15 in June 2020 and further declined to 2.03 in September 2020 before increasing to 2.19 in December 2020.
Interestingly, there is missing data for the receivables turnover ratio for the periods of March 2021, June 2021, and September 2021. This could suggest that the company did not report these figures or that there may have been significant changes in the receivables management practices during these periods.
The receivables turnover ratio then saw a significant improvement in December 2021, spiking to 6.73, which indicates a significant improvement in collecting payments from customers. This positive trend continued in the following periods, with the ratio reaching 11.73 in September 2022.
From March 2023 to December 2024, the receivables turnover ratio remained relatively stable, ranging between 7.70 and 8.91. This suggests that Materion Corporation has been maintaining a consistent level of efficiency in collecting payments from customers during these periods.
Overall, Materion Corporation's receivables turnover ratio shows fluctuations over the years but generally indicates an efficient collection of receivables, particularly with the notable improvements in late 2021 and 2022. It will be essential to monitor this ratio continuously to ensure effective management of accounts receivable going forward.