Newmont Goldcorp Corp (NEM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,635,000 | 11,807,000 | 12,171,000 | 11,286,000 | 9,673,000 |
| Receivables | US$ in thousands | 1,227,000 | 366,000 | 337,000 | 449,000 | 373,000 |
| Receivables turnover | 9.48 | 32.26 | 36.12 | 25.14 | 25.93 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,635,000K ÷ $1,227,000K
= 9.48
The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales during a specific period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
Looking at Newmont Corp's receivables turnover over the past five years, we observe fluctuations in the ratio. In 2023, the receivables turnover decreased to 9.63 from the significantly higher ratio of 32.55 in 2022. This indicates that the company took longer to collect its outstanding receivables in 2023 compared to the previous year.
Over the five-year period, Newmont Corp generally maintained a relatively high receivables turnover ratio, with values ranging between 25.61 and 36.27. This suggests that historically, the company has been effective in managing its accounts receivable and collecting payments in a timely manner, which is a positive sign of efficient credit management.
However, the decline in the receivables turnover ratio in 2023 may warrant further investigation into the company's credit policies, customer payment behavior, and overall liquidity position. It could indicate potential changes in the company's collection practices or shifts in customer payment patterns that may impact cash flow and working capital management.