Owens Corning Inc (OC)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,599,000 | 9,515,000 | 9,565,000 | 9,603,000 | 9,618,000 | 9,473,000 | 9,157,000 | 8,795,000 | 8,364,000 | 8,166,000 | 7,857,000 | 7,243,000 | 6,929,000 | 6,822,000 | 6,801,000 | 7,094,000 | 7,160,000 | 7,192,000 | 7,127,000 | 7,033,000 |
| Receivables | US$ in thousands | 987,000 | 1,300,000 | 1,413,000 | 1,388,000 | 961,000 | 1,304,000 | 1,358,000 | 1,395,000 | 939,000 | 1,141,000 | 1,226,000 | 1,167,000 | 919,000 | 1,016,000 | 986,000 | 931,000 | 770,000 | 977,000 | 986,000 | 1,040,000 |
| Receivables turnover | 9.73 | 7.32 | 6.77 | 6.92 | 10.01 | 7.26 | 6.74 | 6.30 | 8.91 | 7.16 | 6.41 | 6.21 | 7.54 | 6.71 | 6.90 | 7.62 | 9.30 | 7.36 | 7.23 | 6.76 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,599,000K ÷ $987,000K
= 9.73
Owens Corning's receivables turnover ratio has fluctuated over the last eight quarters. The receivables turnover ratio measures how efficiently a company is able to collect payment from its customers. A higher turnover ratio indicates that the company is collecting payments quickly, while a lower ratio suggests slower collections.
In Q4 2023, the receivables turnover ratio was 9.80, a significant increase from the previous quarter's 7.43. This indicates that Owens Corning was able to collect payments more efficiently during this period. However, it is important to note that the ratio can be influenced by various factors such as changes in sales volume, credit terms, and customer payment habits.
Looking at the trend over the past year, Owens Corning's receivables turnover ratios have shown some variability, with peaks and troughs occurring in different quarters. The company experienced its highest turnover ratio in Q4 2022 at 10.16, indicating strong collection efficiency at that time.
Overall, it is important for Owens Corning to closely monitor its receivables turnover ratio and continue to strive for efficient collections to maintain a healthy cash flow and liquidity position. Tracking this ratio over time can help the company understand its collection performance and make informed decisions to improve its working capital management.