NXP Semiconductors NV (NXPI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,276,000 | 13,205,000 | 11,063,000 | 8,612,000 | 8,877,000 |
| Receivables | US$ in thousands | 894,000 | 960,000 | 923,000 | 765,000 | 667,000 |
| Receivables turnover | 14.85 | 13.76 | 11.99 | 11.26 | 13.31 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $13,276,000K ÷ $894,000K
= 14.85
The receivables turnover ratio for NXP Semiconductors NV has shown a general positive trend from 2019 to 2023, indicating the company's ability to efficiently collect cash from its customers. The ratio increased steadily from 13.31 in 2019 to 14.85 in 2023, reflecting improvements in the company's credit and collection policies.
A higher receivables turnover ratio suggests that NXP Semiconductors NV is collecting receivables more frequently throughout the year, which is typically considered favorable as it reduces the risk of bad debts and improves cash flow. The company's ability to quickly convert its accounts receivable into cash signifies a healthy liquidity position and efficient working capital management.
Overall, the increasing trend in the receivables turnover ratio for NXP Semiconductors NV indicates a positive aspect of its financial performance in terms of managing its accounts receivable effectively over the years.
Peer comparison
Dec 31, 2023