Sotera Health Co (SHC)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,049,288 | 990,639 | 976,166 | 987,523 | 1,003,687 | 993,346 | 970,806 | 956,084 | 931,478 | |||
| Receivables | US$ in thousands | 157,734 | 150,662 | 156,386 | 141,679 | 135,940 | 142,067 | 142,611 | 125,762 | 118,482 | 121,803 | 146,954 | 121,354 |
| Receivables turnover | 6.65 | 6.58 | 6.24 | 6.97 | 7.38 | 6.99 | 6.81 | 7.60 | 7.86 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,049,288K ÷ $157,734K
= 6.65
The receivables turnover ratio for Sotera Health Co has been fairly consistent over the past eight quarters, ranging from a low of 6.42 in Q2 2023 to a high of 7.94 in Q1 2022. This ratio measures how efficiently the company is able to collect on its credit sales during a specific period.
A higher receivables turnover ratio indicates that the company is collecting payments from its customers more quickly, which is generally seen as a positive sign of efficient management of accounts receivable. Conversely, a lower ratio could suggest potential issues with collecting payments in a timely manner.
Sotera Health Co's receivables turnover has shown some fluctuations but has generally remained within a relatively stable range. This suggests that the company has been able to effectively manage its accounts receivable and convert credit sales into cash within a reasonable timeframe.
Overall, the data indicates that Sotera Health Co has been efficient in managing its accounts receivable levels and collecting on credit sales, with room for potential improvement in certain quarters.
Peer comparison
Dec 31, 2023