Verizon Communications Inc (VZ)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 | 131,868,000 |
| Receivables | US$ in thousands | 25,996,000 | 24,506,000 | 23,846,000 | 23,917,000 | 25,429,000 |
| Receivables turnover | 5.15 | 5.58 | 5.60 | 5.36 | 5.19 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $133,974,000K ÷ $25,996,000K
= 5.15
Verizon Communications Inc's receivables turnover ratio has fluctuated over the past five years. The ratio measures how efficiently the company is collecting its accounts receivable during a given period. From 2019 to 2022, there was a generally increasing trend in the receivables turnover ratio, indicating that the company was collecting its receivables more quickly over these years.
In 2023, the receivables turnover ratio decreased slightly to 5.34, which may suggest a slight slowdown in the collections process compared to the previous year. However, the ratio remains relatively consistent and indicates that Verizon is still managing its receivables efficiently.
Overall, a receivables turnover ratio above 5 indicates that Verizon is converting its accounts receivable into cash multiple times throughout the year, which is a positive sign of effective credit management and collection practices. Monitoring this ratio over time can help assess the company's liquidity and efficiency in managing its receivables.
Peer comparison
Dec 31, 2023