RPC Inc (RES)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,627,900	1,610,970	874,713	607,747	1,225,850
Receivables	US$ in thousands	437,693	567,285	401,039	276,099	322,895
Receivables turnover		3.72	2.84	2.18	2.20	3.80

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,627,900K ÷ $437,693K
= 3.72

The receivables turnover ratio for RPC, Inc. has shown fluctuating trends over the past five years. The ratio increased from 2.44 in 2020 to 4.29 in 2023, indicating that the company's efficiency in collecting receivables improved significantly during this period. This implies that RPC, Inc. was able to convert its accounts receivable into cash more frequently in 2023 compared to the prior years.

The upward trend in the receivables turnover ratio suggests that the company's credit policies might have become stricter, leading to faster collection of outstanding payments from customers. This could potentially reduce the risk of bad debts and improve the company's cash flow position.

However, the receivables turnover ratio dropped in 2022 compared to 2023, which could indicate a temporary slowdown in receivables collection efficiency during that year. It is important for RPC, Inc. to closely monitor its receivables turnover ratio to ensure that it remains at healthy levels over time.