Waters Corporation (WAT)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,857,555	2,913,395	2,928,280	2,913,876	2,923,159	2,904,113	2,856,130	2,822,850	2,740,936	2,690,971	2,625,688	2,463,034	2,316,295	2,242,766	2,225,719	2,306,467	2,357,906	2,359,178	2,359,942	2,356,755
Receivables	US$ in thousands	702,168	631,284	693,436	—	722,892	-13,235	-13,347	-13,143	612,648	-13,662	-14,798	-13,595	573,316	494,432	496,276	522,209	587,734	504,865	518,520	508,285
Receivables turnover		4.07	4.62	4.22	—	4.04	—	—	—	4.47	—	—	—	4.04	4.54	4.48	4.42	4.01	4.67	4.55	4.64

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,857,555K ÷ $702,168K
= 4.07

The receivables turnover ratio measures how efficiently a company collects outstanding customer payments within a specific period. Looking at Waters Corp.'s receivables turnover over the past eight quarters, we observe fluctuations in the ratio.

The average receivables turnover for Waters Corp. over the eight quarters is approximately 4.51. A higher turnover ratio indicates that the company is able to collect outstanding payments more quickly, which is generally preferable as it signifies strong liquidity and effective credit management.

Comparing quarterly data, there are fluctuations in the receivables turnover ratio. In Q3 2022, the ratio peaked at 4.91, indicating exceptionally efficient collection of receivables, while in Q4 2022, there was a slight dip to 4.11, possibly suggesting some challenges or delays in collecting payments during that period.

Overall, Waters Corp. has maintained a fairly consistent range for its receivables turnover, with minor fluctuations throughout the quarters. It would be beneficial for the company to monitor these fluctuations closely to ensure efficient management of accounts receivable and maintain healthy cash flow levels.