Waters Corporation (WAT)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Receivables	US$ in thousands	702,168	722,892	612,648	573,316	587,734
Receivables turnover		4.05	4.00	4.47	4.03	4.00

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,842,300K ÷ $702,168K
= 4.05

The receivables turnover ratio for Waters Corp. has been relatively consistent over the past five years, ranging from 4.09 to 4.55. This ratio measures how efficiently the company is collecting on its accounts receivable during the year.

A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is generally a positive sign of strong liquidity and effective credit management. Conversely, a lower ratio could suggest potential issues with collecting receivables in a timely manner.

Waters Corp.'s receivables turnover ratio has shown stability over the years, indicating that the company has been consistently managing its accounts receivable effectively. This consistency in collecting receivables reflects positively on the company's financial health and ability to convert sales into cash efficiently.