Minerals Technologies Inc (MTX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,108,700 | 2,074,800 | 1,820,700 | 1,556,400 | 1,745,900 |
| Receivables | US$ in thousands | 399,100 | 404,000 | 367,800 | 369,000 | 376,200 |
| Receivables turnover | 5.28 | 5.14 | 4.95 | 4.22 | 4.64 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,108,700K ÷ $399,100K
= 5.28
Minerals Technologies, Inc.'s receivables turnover has shown a consistent improvement over the past five years, indicating the company's ability to efficiently collect payments from its customers. The increasing trend from 4.76 in 2019 to 5.44 in 2023 signifies that the company is managing its accounts receivable more effectively.
A higher receivables turnover ratio suggests that the company is converting its accounts receivable into cash more frequently within a year. This efficiency in collecting payments from its customers is positive for the company as it indicates strong liquidity and potentially reduces the risk of bad debts.
The steady improvement in the receivables turnover ratio reflects positively on Minerals Technologies, Inc.'s credit and collection policies, as well as its ability to manage its working capital effectively. The company's management may be implementing strategies to streamline the credit approval process or adopting more aggressive collection tactics, contributing to the enhanced receivables turnover performance.
Overall, the increasing trend in the receivables turnover ratio demonstrates that Minerals Technologies, Inc. is effectively managing its accounts receivable, which is a key indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023