Owens Corning Inc (OC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,599,000 | 9,618,000 | 8,364,000 | 6,929,000 | 7,160,000 |
| Receivables | US$ in thousands | 987,000 | 961,000 | 939,000 | 919,000 | 770,000 |
| Receivables turnover | 9.73 | 10.01 | 8.91 | 7.54 | 9.30 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,599,000K ÷ $987,000K
= 9.73
Owens Corning's receivables turnover ratio indicates the efficiency with which the company collects outstanding receivables from customers during a specific period. A higher receivables turnover ratio is generally preferable as it suggests that the company is able to collect payments quickly.
The trend of Owens Corning's receivables turnover over the past five years shows fluctuations but generally remains at a healthy level. In 2023, the receivables turnover ratio decreased slightly to 9.80 compared to the previous year, where it was 10.16. This could indicate that the company took slightly longer to collect receivables in 2023. However, it is important to note that a receivables turnover ratio of 9.80 is still relatively strong.
Looking further back, there was a significant improvement in receivables turnover from 2019 to 2020, with the ratio increasing from 9.30 to 7.68. This suggests that Owens Corning improved its collection efficiency during this period.
Overall, Owens Corning's receivables turnover ratios indicate that the company has been effective in managing its accounts receivable over the past five years, although there have been some fluctuations. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's overall financial health and management effectiveness.