Visteon Corp (VC)
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 | 3,954,000 | 4,022,000 | 4,036,000 | 3,902,000 | 3,756,000 | 3,478,000 | 3,083,000 | 2,846,000 | 2,774,000 | 2,768,000 | 2,886,000 | 2,649,000 | 2,548,000 | 2,505,000 | 2,489,000 | 2,851,000 | 2,945,000 | 2,932,000 | 2,882,000 | 2,907,000 |
| Receivables | US$ in thousands | 989,000 | 887,000 | 836,000 | 789,000 | 838,000 | 834,000 | 663,000 | 586,000 | 701,000 | 537,000 | 508,000 | 521,000 | 662,000 | 591,000 | 407,000 | 447,000 | 672,000 | 539,000 | 468,000 | 519,000 |
| Receivables turnover | 4.00 | 4.53 | 4.83 | 4.95 | 4.48 | 4.17 | 4.65 | 4.86 | 3.96 | 5.15 | 5.68 | 5.08 | 3.85 | 4.24 | 6.12 | 6.38 | 4.38 | 5.44 | 6.16 | 5.60 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,954,000K ÷ $989,000K
= 4.00
The receivables turnover ratio for Visteon Corp. over the past eight quarters has shown a generally positive trend, indicating the company's ability to efficiently collect payments from its customers. The ratio ranged from a low of 4.18 in Q3 2022 to a high of 5.37 in both Q4 2023 and Q2 2023.
Overall, Visteon Corp.'s receivables turnover has been consistently above 4, demonstrating a healthy rate of receivables turnover. This suggests that the company is managing its accounts receivable effectively, converting credit sales into cash at a relatively rapid pace.
The recent peak in Q4 2023 and Q2 2023 indicates an improvement in the efficiency of Visteon Corp.'s collection process, possibly due to tighter credit policies or a focus on prompt invoice processing. On the other hand, the fluctuation in the ratio in earlier quarters, such as Q3 2022, may indicate variations in customer payment behavior or changes in sales volume.
Overall, the trend in Visteon Corp.'s receivables turnover ratio reflects a healthy financial position with efficient management of accounts receivable. It is essential for the company to sustain this positive trend to ensure continued liquidity and financial stability.
Peer comparison
Dec 31, 2023