Ovintiv Inc (OVV)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,883,000 | 12,464,000 | 8,658,000 | 6,087,000 | 6,726,000 |
| Receivables | US$ in thousands | 2,420,000 | 2,790,000 | 2,371,000 | 1,957,000 | 2,540,000 |
| Receivables turnover | 4.50 | 4.47 | 3.65 | 3.11 | 2.65 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,883,000K ÷ $2,420,000K
= 4.50
Receivables turnover is a financial ratio that measures a company's efficiency in collecting its accounts receivable during a specific period. A higher receivables turnover indicates that the company is more effective in collecting payments from its customers.
Analyzing the receivables turnover of Ovintiv Inc over the past five years reveals significant fluctuations. In 2023, the receivables turnover ratio stood at 7.41, indicating an improvement compared to the previous year. This suggests that Ovintiv Inc was more efficient in collecting outstanding receivables in 2023.
On the other hand, the receivables turnover ratio for 2022 was unusually high at 288.28, which could be an anomaly or could indicate a specific event that impacted the ratio. This substantial increase may require further investigation to understand the underlying reasons.
In 2021, the receivables turnover ratio was 88.51, indicating a strong performance in collecting receivables. However, it was lower than the unusual spike in 2022. The ratios for 2020 and 2019 were 5.28 and 22.47, respectively, showing variations in the company's ability to collect receivables over these years.
Overall, fluctuations in the receivables turnover ratio of Ovintiv Inc suggest varying levels of efficiency in collecting accounts receivable. Further analysis and comparison with industry benchmarks would provide a clearer understanding of the company's performance in managing its receivables.
Peer comparison
Dec 31, 2023