Westinghouse Air Brake Technologies Corp (WAB)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,364,000 | 9,432,000 | 8,179,000 | 7,657,000 | 7,339,800 |
| Receivables | US$ in thousands | 1,152,000 | 1,180,000 | 1,055,000 | 1,085,000 | 969,300 |
| Receivables turnover | 9.00 | 7.99 | 7.75 | 7.06 | 7.57 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,364,000K ÷ $1,152,000K
= 9.00
The receivables turnover ratio for Westinghouse Air Brake Technologies Corp has shown a consistent upward trend over the observed period, reflecting the company's ability to efficiently collect outstanding receivables. From 7.57 in December 2020, the ratio slightly decreased to 7.06 by December 2021, before increasing to 7.75 in December 2022, further rising to 7.99 in December 2023, and reaching a peak of 9.00 by December 2024.
This improvement indicates that the company has been more effective in converting its accounts receivable into cash during the latter years, which could be a positive sign of good credit management and sound customer payment practices. A higher receivables turnover ratio generally suggests that the company is collecting payments faster, which can help enhance liquidity and cash flow. Overall, this upward trend in receivables turnover reflects positively on Westinghouse Air Brake Technologies Corp's financial efficiency and management of its receivables.
Peer comparison
Dec 31, 2024