Enviri Corporation (NVRI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,069,220 | 1,889,060 | 1,848,400 | 1,534,030 | 1,204,370 |
| Receivables | US$ in thousands | 314,629 | 289,807 | 410,940 | 441,643 | 331,255 |
| Receivables turnover | 6.58 | 6.52 | 4.50 | 3.47 | 3.64 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,069,220K ÷ $314,629K
= 6.58
Enviri Corp's receivables turnover has improved consistently over the past five years, reflecting the company's efficiency in collecting outstanding receivables from its customers. The increasing trend indicates that Enviri Corp has been able to convert its accounts receivable into cash at a faster rate each year.
The ratio has increased from 4.54 in 2019 to 6.58 in 2023, indicating a significant improvement in the company's ability to collect payments from its customers promptly. This suggests that Enviri Corp has been managing its credit policies effectively and maintaining good relationships with its customers, resulting in a shorter collection period.
A higher receivables turnover ratio is generally considered favorable as it signifies that the company is efficiently managing its receivables and converting them into cash quickly. This can enhance cash flow, reduce the risk of bad debts, and improve the overall liquidity position of the company.
Overall, Enviri Corp's increasing receivables turnover ratio is a positive sign of its operational efficiency and effectiveness in managing its accounts receivable, which bodes well for the company's financial health and stability.