NewMarket Corporation (NEU)

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	2,657,060	2,693,036	2,722,787	2,764,467	2,718,052	2,610,742	2,535,924	2,401,221	2,315,892	2,282,767	2,176,308	1,998,315	1,990,356	1,997,020	2,039,447	2,191,264	2,167,555	2,171,422	2,177,951	2,215,662
Receivables	US$ in thousands	432,349	427,764	436,250	457,203	453,692	476,061	515,002	464,510	391,779	414,847	399,373	373,655	336,395	328,677	297,862	347,155	335,826	340,752	349,210	351,405
Receivables turnover		6.15	6.30	6.24	6.05	5.99	5.48	4.92	5.17	5.91	5.50	5.45	5.35	5.92	6.08	6.85	6.31	6.45	6.37	6.24	6.31

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,657,060K ÷ $432,349K
= 6.15

The receivables turnover of NewMarket Corp. has been gradually increasing over the past quarters. In Q4 2023, the receivables turnover ratio was 6.24, slightly lower than the ratio in the previous quarter (Q3 2023) of 6.40. This indicates that the company collected its accounts receivable more efficiently in Q4 2023 compared to the prior quarter.

Furthermore, the average collection period for accounts receivable decreased from approximately 59 days in Q3 2023 to about 58 days in Q4 2023. This suggests that NewMarket Corp. is effectively managing its credit sales and collecting outstanding payments from customers in a timelier manner.

Comparing with the same quarter in the previous year (Q4 2022), there has been a noticeable improvement in the receivables turnover ratio, as it increased from 6.09 to 6.24 in Q4 2023. This indicates a more efficient utilization of the company's accounts receivable for generating revenue.

Overall, the trend of increasing receivables turnover ratios implies that NewMarket Corp. has been improving its accounts receivable management and collection practices, which is a positive indicator of effective working capital management and potential cash flow optimization.