NOV Inc. (NOV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Receivables | US$ in thousands | 1,905,000 | 1,739,000 | 1,321,000 | 1,274,000 | 1,855,000 |
| Receivables turnover | 4.51 | 4.16 | 4.18 | 4.78 | 4.57 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,583,000K ÷ $1,905,000K
= 4.51
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. NOV Inc's receivables turnover has fluctuated over the past five years, ranging from a low of 4.16 in 2022 to a high of 4.78 in 2020.
A higher receivables turnover ratio, such as the peak in 2020, indicates that NOV Inc is collecting its accounts receivable more quickly, which is generally a positive sign of efficient credit control and effective collection efforts. Conversely, a lower ratio, as seen in 2022, may suggest potential issues with collecting outstanding debts within the industry's standard timeframe.
Overall, NOV Inc's receivables turnover ratios have been relatively stable around the 4.5 range in recent years, indicating a consistent performance in managing its receivables effectively. Monitoring this ratio can provide insights into the company's liquidity and credit risk management practices.
Peer comparison
Dec 31, 2023