Terex Corporation (TEX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,127,000 | 5,152,000 | 4,417,700 | 3,886,800 | 3,076,400 |
| Receivables | US$ in thousands | 643,000 | 548,000 | 547,500 | 507,700 | 381,200 |
| Receivables turnover | 7.97 | 9.40 | 8.07 | 7.66 | 8.07 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,127,000K ÷ $643,000K
= 7.97
Based on the provided data, Terex Corporation's receivables turnover ratio has fluctuated over the past five years. In December 2020, the ratio stood at 8.07, indicating that the company collected its accounts receivables approximately 8.07 times during that year.
In the following year, December 2021, the receivables turnover ratio decreased to 7.66, suggesting a slight decrease in the efficiency of collecting accounts receivables.
However, in December 2022, the ratio returned to its previous level of 8.07, indicating a possible improvement in the company's receivables management.
By December 2023, Terex Corporation's receivables turnover ratio significantly increased to 9.40, signaling that the company was more efficient in collecting its outstanding receivables during that year.
In the most recent year of December 2024, the ratio decreased to 7.97, which could indicate a potential slowdown in receivables turnover efficiency compared to the prior year.
Overall, the receivables turnover ratio for Terex Corporation has shown some variability over the five-year period, with fluctuations that could be indicative of changes in the company's collection policies, customer payment behavior, or overall business performance.