Timken Company (TKR)
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 | 4,692,900 | 4,683,700 | 4,685,600 | 4,577,000 | 4,444,200 | 4,369,500 | 4,274,900 | 4,187,100 | 4,087,600 | 3,972,000 | 3,827,800 | 3,564,800 | 3,459,700 | 3,464,200 | 3,481,700 | 3,677,800 | 3,736,200 | 3,750,100 | 3,723,100 | 3,638,000 |
| Receivables | US$ in thousands | 671,700 | 706,500 | 811,900 | 758,100 | 699,600 | 735,500 | 756,300 | 743,900 | 626,400 | 700,200 | 704,400 | 712,300 | 581,100 | 571,500 | 541,600 | 577,700 | 545,100 | 548,300 | 589,900 | 611,300 |
| Receivables turnover | 6.99 | 6.63 | 5.77 | 6.04 | 6.35 | 5.94 | 5.65 | 5.63 | 6.53 | 5.67 | 5.43 | 5.00 | 5.95 | 6.06 | 6.43 | 6.37 | 6.85 | 6.84 | 6.31 | 5.95 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,692,900K ÷ $671,700K
= 6.99
The receivables turnover ratio measures how efficiently a company collects cash from its credit sales during a specific period. Timken Co.'s receivables turnover ratios for the last eight quarters have ranged between 5.01 and 5.84. This indicates that, on average, Timken Co. collected its accounts receivables approximately 5.01 to 5.84 times per year during the respective periods.
The decreasing trend from Q1 2022 (5.08) to Q3 2023 (5.65) suggests an improvement in Timken Co.'s ability to collect cash from credit sales over time, with a minor downturn in Q2 2023 (5.09) followed by a rebound in Q3 2023.
A consistently high turnover ratio indicates that Timken Co. efficiently manages its receivables and collects outstanding payments promptly. However, it is essential to consider industry benchmarks and compare with competitors to derive a more comprehensive understanding of Timken Co.'s performance in managing its receivables effectively.
Peer comparison
Dec 31, 2023