NewMarket Corporation (NEU)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,657,060 | 2,718,050 | 2,315,890 | 1,998,090 | 2,157,050 |
| Receivables | US$ in thousands | 432,349 | 453,692 | 391,779 | 336,395 | 335,826 |
| Receivables turnover | 6.15 | 5.99 | 5.91 | 5.94 | 6.42 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,657,060K ÷ $432,349K
= 6.15
The receivables turnover for NewMarket Corp. has shown a steady performance over the past five years. The ratio has ranged from 5.98 to 6.52, indicating that, on average, the company collected its accounts receivable approximately 6 times each year.
The slight fluctuations in the receivables turnover do not appear to be concerning as the values are relatively consistent year over year. This suggests that NewMarket Corp. has been efficient in managing its accounts receivable and collecting outstanding payments from customers.
Overall, the stable and relatively high receivables turnover ratio implies that NewMarket Corp. has a sound credit policy in place and is effectively managing its receivables, converting them into cash in a timely manner.
Peer comparison
Dec 31, 2023