Ingevity Corp (NGVT)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,402,200 | 1,595,100 | 1,604,200 | 1,337,300 | 1,174,800 |
| Receivables | US$ in thousands | 1,800 | 4,700 | 4,900 | 600 | 151,600 |
| Receivables turnover | 779.00 | 339.38 | 327.39 | 2,228.83 | 7.75 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,402,200K ÷ $1,800K
= 779.00
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. Ingevity Corp's receivables turnover has shown significant fluctuations over the past five years.
As of December 31, 2020, the company's receivables turnover was 7.75, indicating that on average, the company collected its accounts receivable 7.75 times during that year. This implies that it took approximately 47 days to collect outstanding receivables based on a 365-day year.
The sharp increase in the receivables turnover to 2,228.83 as of December 31, 2021, is likely an outlier or may indicate a change in the company's credit policies or customer base. Such a high turnover ratio could suggest either exceptional efficiency in collecting receivables or a significant change in the company's business operations.
Subsequently, the ratio decreased to 327.39 as of December 31, 2022, and then slightly increased to 339.38 as of December 31, 2023. These values indicate fluctuations in the efficiency of accounts receivable collection over these periods.
Finally, as of December 31, 2024, the receivables turnover ratio significantly improved to 779.00, showcasing a notable increase in the efficiency of collecting accounts receivable compared to the previous years.
Overall, analyzing Ingevity Corp's receivables turnover indicates varying trends in the company's ability to collect outstanding receivables over the past five years. The management may need to investigate the reasons behind these fluctuations and assess the effectiveness of their credit and collection policies.
Peer comparison
Dec 31, 2024