Patterson-UTI Energy Inc (PTEN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,096,500 | 2,619,410 | 1,316,530 | 1,090,150 | 2,385,360 |
| Receivables | US$ in thousands | 998,040 | 565,919 | 356,150 | 164,642 | 346,096 |
| Receivables turnover | 4.10 | 4.63 | 3.70 | 6.62 | 6.89 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,096,500K ÷ $998,040K
= 4.10
The receivables turnover ratio for Patterson-UTI Energy Inc has experienced fluctuations over the past five years. In 2023, the ratio decreased to 4.15 from 4.68 in 2022, indicating that the company collected its accounts receivable approximately 4.15 times during the year. This decline suggests a longer collection period compared to the previous year.
In 2021, the receivables turnover ratio was 3.81, showing a slight decrease from 2020 when it was 6.83. This significant drop suggests that the company took longer to collect its receivables in 2021 compared to 2020.
Moreover, in 2020 and 2019, Patterson-UTI Energy Inc had higher receivables turnover ratios of 6.83 and 7.14, respectively. These high ratios indicate that the company efficiently collected its accounts receivable in those years, with lower collection periods.
Overall, the trend in Patterson-UTI Energy Inc's receivables turnover ratio reflects a mix of efficient and less efficient collection periods over the past five years, which could potentially indicate fluctuations in the company's credit policies, the efficiency of its collections department, or changes in customer payment behavior. Keeping a close eye on this ratio can help stakeholders assess the company's accounts receivable management effectiveness and overall financial health.
Peer comparison
Dec 31, 2023