United Parcel Service Inc (UPS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 90,120,000 | 99,706,000 | 96,557,000 | 83,936,000 | 73,435,000 |
| Receivables | US$ in thousands | 11,216,000 | 12,583,000 | 12,541,000 | 10,750,000 | 9,934,000 |
| Receivables turnover | 8.03 | 7.92 | 7.70 | 7.81 | 7.39 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $90,120,000K ÷ $11,216,000K
= 8.03
United Parcel Service, Inc.'s receivables turnover has shown a relatively stable trend over the past five years. The company's receivables turnover ratio ranged between 7.76 and 8.11 during this period, indicating that, on average, UPS collects its accounts receivable approximately 7.8 to 8.1 times per year.
A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, translating into a shorter time period between credit sales and cash collection. This can be seen as a positive indicator of UPS's liquidity and operational efficiency in managing its accounts receivable.
Overall, UPS's consistent receivables turnover performance demonstrates effective credit management and collection practices, contributing to the company's financial stability and operational effectiveness.