Republic Services Inc (RSG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,278,700 | 15,645,200 | 13,321,800 | 12,031,700 | 12,193,000 |
| Receivables | US$ in thousands | 1,831,600 | 1,737,000 | 1,303,600 | 1,123,500 | 1,214,000 |
| Receivables turnover | 9.43 | 9.01 | 10.22 | 10.71 | 10.04 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $17,278,700K ÷ $1,831,600K
= 9.43
The receivables turnover ratio measures how efficiently Republic Services, Inc. collects outstanding customer balances during a particular period. The company's trend in receivables turnover over the past five years has been relatively stable, ranging between 6.81 and 7.64.
In 2023, the receivables turnover ratio improved to 7.51 from 6.81 in the previous year, indicating that the company collected its accounts receivable more effectively. This suggests a positive trend in managing its accounts receivable and converting them into cash.
Compared to 2021 and 2019, where the receivables turnover ratio was 7.49 and 7.34 respectively, 2023's higher ratio implies a better performance in collecting receivables.
Generally, a higher receivables turnover ratio is favorable as it indicates that Republic Services, Inc. is efficient in collecting funds owed by customers. Investors and creditors consider a consistent or improving trend in receivables turnover as a positive sign of the company's liquidity and efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023