Vontier Corp (VNT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,081,000 | 3,083,800 | 2,921,100 | 2,671,300 |
| Receivables | US$ in thousands | 601,200 | 610,200 | 571,800 | 539,100 |
| Receivables turnover | 5.12 | 5.05 | 5.11 | 4.96 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,081,000K ÷ $601,200K
= 5.12
The receivables turnover of Vontier Corporation has been relatively stable over the last five years, ranging from 5.65 in 2019 to 6.22 in 2023. This ratio indicates how efficiently the company is collecting its accounts receivable during a specific period.
A higher receivables turnover ratio typically suggests that the company is collecting its outstanding receivables more quickly, which is generally favorable as it indicates efficient management of accounts receivable. Vontier's consistently high receivables turnover over the years indicates that the company has been effective in managing its credit policies and collecting payments from customers in a timely manner.
Overall, Vontier Corporation's receivables turnover has shown a positive trend, reflecting its ability to efficiently convert credit sales into cash, which is important for maintaining liquidity and financial health. It demonstrates the company's effectiveness in managing credit terms and collecting payments promptly from its customers.
Peer comparison
Dec 31, 2023