Terex Corporation (TEX)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,127,200 | 5,108,800 | 5,186,900 | 5,208,300 | 5,151,500 | 5,146,500 | 4,976,900 | 4,650,900 | 4,417,700 | 4,190,200 | 4,063,500 | 4,025,100 | 3,886,800 | 3,683,400 | 3,455,200 | 3,107,000 | 3,076,400 | 3,174,700 | 3,433,700 | 4,050,100 |
| Receivables | US$ in thousands | 643,000 | 670,000 | 719,400 | 685,300 | 548,000 | 645,100 | 681,200 | 630,100 | 547,500 | 531,100 | 558,900 | 525,600 | 507,700 | 513,400 | 546,500 | 488,300 | 381,200 | 403,200 | 351,300 | 402,000 |
| Receivables turnover | 7.97 | 7.63 | 7.21 | 7.60 | 9.40 | 7.98 | 7.31 | 7.38 | 8.07 | 7.89 | 7.27 | 7.66 | 7.66 | 7.17 | 6.32 | 6.36 | 8.07 | 7.87 | 9.77 | 10.07 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,127,200K ÷ $643,000K
= 7.97
Terex Corporation's receivables turnover ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's efficiency in collecting outstanding receivables from its customers.
The turnover ratio ranged from a high of 10.07 in March 2020 to a low of 6.32 in June 2021, showing variability in the company's collection efficiency. A higher ratio generally implies that Terex is collecting its receivables more frequently within a given period.
Overall, the average receivables turnover ratio over the period appears to be around 7.62, indicating that, on average, Terex collects its receivables approximately 7.62 times per period. The trend in the ratio doesn't show a clear directional movement, with fluctuations observed throughout the period.
It is essential for Terex to monitor and manage its receivables turnover ratio effectively to ensure timely collection of outstanding amounts, maintain healthy cash flows, and minimize the risk of bad debts. Further analysis and comparison with industry benchmarks can provide valuable insights into Terex's performance in managing its accounts receivable effectively.