Verizon Communications Inc (VZ)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	134,788,000	134,237,000	134,243,000	134,043,000	133,974,000	134,095,000	135,000,000	136,193,000	136,835,000	135,651,000	134,325,000	134,300,000	133,613,000	134,238,000	132,866,000	129,549,000	128,292,000	128,375,000	129,726,000	131,350,000
Receivables	US$ in thousands	27,309,000	26,794,000	26,356,000	26,086,000	25,996,000	23,602,000	23,186,000	22,856,000	24,506,000	23,670,000	36,902,000	23,615,000	23,846,000	22,195,000	21,257,000	22,507,000	23,917,000	22,617,000	22,672,000	23,797,000
Receivables turnover		4.94	5.01	5.09	5.14	5.15	5.68	5.82	5.96	5.58	5.73	3.64	5.69	5.60	6.05	6.25	5.76	5.36	5.68	5.72	5.52

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $134,788,000K ÷ $27,309,000K
= 4.94

The receivables turnover ratio for Verizon Communications Inc has shown relatively stable performance over the last few years, hovering around the range of 5 to 6 times annually. There was a noticeable increase in receivables turnover from June 2021 to September 2021, peaking at 6.25 times, indicating that the company was collecting its accounts receivable more efficiently during that period.

However, the receivables turnover ratio experienced a significant decline in the second quarter of 2022, dropping to 3.64 times. This could suggest a slower collection of receivables during that period, potentially impacting the company's cash flow and liquidity position.

Subsequently, the ratio rebounded and stabilized around 5.5 times for the remainder of 2022 and into 2023. This indicates that the company was able to maintain a consistent pace of collecting its accounts receivable during those periods.

Overall, maintaining a steady receivables turnover ratio is crucial for Verizon Communications Inc to efficiently manage its accounts receivable and convert them into cash. Any significant fluctuations in this ratio could signal potential underlying issues in the company's receivables management and cash flow operations.