Resideo Technologies Inc (REZI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,177,000 | 6,308,000 | 5,786,000 | 10,080,000 | 9,917,000 |
| Receivables | US$ in thousands | 973,000 | 1,002,000 | 876,000 | 863,000 | 817,000 |
| Receivables turnover | 6.35 | 6.30 | 6.61 | 11.68 | 12.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,177,000K ÷ $973,000K
= 6.35
The receivables turnover ratio for Resideo Technologies Inc has shown some fluctuation over the past five years. In 2023, the receivables turnover ratio was 6.42, slightly higher than the previous year's ratio of 6.36. This indicates that the company collected its accounts receivable approximately 6.42 times during the year.
Comparing to 2021, the ratio decreased slightly from 6.67, which could suggest that Resideo Technologies Inc took slightly longer to collect its receivables in 2023. However, the ratio remains relatively stable within the range of 5.88 to 6.67 over the past five years, indicating that the company has been managing its accounts receivable effectively.
A higher receivables turnover ratio generally indicates that the company is efficient in collecting payments from customers, while a lower ratio may suggest potential issues with collecting receivables in a timely manner. Overall, the stable and consistent performance of the receivables turnover ratio for Resideo Technologies Inc reflects a solid management of its accounts receivable over the years.