Terex Corporation (TEX)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 4,353,100 | 4,093,400 | 4,297,300 | 4,243,400 |
| Receivables | US$ in thousands | 547,800 | 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 | 401,900 | 491,700 | 643,800 | 661,600 |
| Receivables turnover | 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 | 10.83 | 8.32 | 6.67 | 6.41 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,151,500K ÷ $547,800K
= 9.40
Terex Corp.'s receivables turnover ratio has exhibited fluctuations over the past eight quarters. The Q4 2023 ratio of 9.40 indicates that the company collected its accounts receivable approximately 9.40 times during the quarter, which is an improvement from the previous quarter's ratio of 7.98. This suggests that Terex Corp. is managing its accounts receivable more efficiently in the most recent period.
Comparing Q4 2023 with the same period in the previous year (Q4 2022), the receivables turnover ratio decreased from 8.07 to 9.40, indicating a noteworthy enhancement in receivables management efficiency over the year.
Overall, Terex Corp.'s receivables turnover has shown some variability in recent quarters, but the latest ratio indicates a positive trend in the company's ability to collect outstanding receivables efficiently. It is essential for the company to monitor this ratio consistently to ensure that receivables are managed effectively to maintain healthy cash flows and working capital.