United Parcel Service Inc (UPS)
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 | 90,120,000 | 92,386,000 | 95,508,000 | 98,239,000 | 99,706,000 | 99,824,000 | 99,024,000 | 97,853,000 | 96,557,000 | 94,412,000 | 92,466,000 | 89,501,000 | 84,628,000 | 80,300,000 | 77,380,000 | 74,969,000 | 74,094,000 | 73,374,000 | 72,500,000 | 71,908,000 |
| Receivables | US$ in thousands | 11,216,000 | 9,461,000 | 9,587,000 | 10,299,000 | 12,583,000 | 10,975,000 | 11,396,000 | 11,199,000 | 12,541,000 | 10,474,000 | 10,137,000 | 10,127,000 | 10,750,000 | 8,993,000 | 9,230,000 | 8,126,000 | 9,934,000 | 7,951,000 | 8,071,000 | 7,613,000 |
| Receivables turnover | 8.03 | 9.76 | 9.96 | 9.54 | 7.92 | 9.10 | 8.69 | 8.74 | 7.70 | 9.01 | 9.12 | 8.84 | 7.87 | 8.93 | 8.38 | 9.23 | 7.46 | 9.23 | 8.98 | 9.45 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $90,120,000K ÷ $11,216,000K
= 8.03
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher receivables turnover ratio indicates that the company is able to collect outstanding payments from customers more quickly.
Based on the data provided for United Parcel Service, Inc., we observe fluctuations in the receivables turnover ratio over the past eight quarters. The ratio ranged from 7.97 to 10.03 during this period.
Overall, the company's receivables turnover has shown a general upward trend, with some fluctuations quarter by quarter. There was a significant increase in the ratio in Q2 2023 compared to the previous quarter, followed by a slight decrease in Q3 2023. This indicates that the company improved its efficiency in collecting cash from customers in Q2 2023 but experienced a small setback in Q3 2023.
The average receivables turnover ratio for the past eight quarters is approximately 9.16, indicating that, on average, United Parcel Service, Inc. is able to collect cash from customers about 9.16 times a year.
It is essential for the company to monitor its receivables turnover ratio consistently to ensure efficient management of its accounts receivable and optimize cash flow. Additionally, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this aspect.
See also:
United Parcel Service Inc Receivables Turnover (Quarterly Data)