Timken Company (TKR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,645,100 | 4,435,900 | 4,063,400 | 3,454,700 | 3,732,400 |
| Receivables | US$ in thousands | 671,700 | 699,600 | 626,400 | 581,100 | 545,100 |
| Receivables turnover | 6.92 | 6.34 | 6.49 | 5.95 | 6.85 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,645,100K ÷ $671,700K
= 6.92
The receivables turnover ratio for Timken Co. has shown a fluctuating trend over the past five years. In 2023, the company's receivables turnover increased to 5.84 from 5.60 in 2022, indicating that the company collected its accounts receivable more efficiently during that period. This improvement suggests that Timken Co. was able to convert its accounts receivable into cash at a faster rate in 2023 compared to the previous year.
Looking back at the trend, the company's receivables turnover ratio was slightly higher in 2021 and 2019 compared to 2023, indicating stronger efficiency in collecting receivables during those years. However, there was a slight dip in 2020 when the receivables turnover ratio dropped to 5.08. Overall, Timken Co. has maintained a relatively stable performance in managing its accounts receivable turnover over the past five years, with occasional fluctuations in efficiency.
Peer comparison
Dec 31, 2023