Verizon Communications Inc (VZ)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 134,788,000 | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 |
| Receivables | US$ in thousands | 27,309,000 | 25,996,000 | 24,506,000 | 23,846,000 | 23,917,000 |
| Receivables turnover | 4.94 | 5.15 | 5.58 | 5.60 | 5.36 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $134,788,000K ÷ $27,309,000K
= 4.94
Verizon Communications Inc's receivables turnover has shown relatively stable performance over the past few years. The ratio has ranged from 4.94 to 5.60, indicating that on average, Verizon collects its accounts receivable approximately 5.15 times a year.
A higher receivables turnover ratio generally suggests that the company efficiently collects outstanding receivables, which is positive for cash flow and liquidity. However, the slight decrease in the receivables turnover from 2021 to 2024 may indicate a potential slowdown in collecting receivables or changes in the company's credit policies.
Overall, Verizon Communications Inc's receivables turnover reflects a solid performance in managing its accounts receivable, but further analysis is recommended to determine the drivers behind the fluctuations observed in recent years.
Peer comparison
Dec 31, 2024