Werner Enterprises Inc (WERN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,283,500	3,289,980	2,734,370	2,372,180	2,463,700
Receivables	US$ in thousands	447,152	521,506	463,904	344,911	328,541
Receivables turnover		7.34	6.31	5.89	6.88	7.50

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,283,500K ÷ $447,152K
= 7.34

The receivables turnover for Werner Enterprises, Inc. has shown a fluctuating trend over the past five years. In 2023, the receivables turnover ratio improved to 6.98 times, indicating that the company collected its accounts receivable nearly 7 times during the year. This represents a significant increase compared to 2022 when the ratio was 6.00.

Despite the fluctuation, Werner Enterprises has generally maintained a healthy receivables turnover ratio above 5 times in recent years, suggesting efficient management of its accounts receivable. A higher turnover ratio indicates that the company is collecting its outstanding receivables more frequently, which is favorable as it implies a shorter cash conversion cycle and improved liquidity.

Overall, the upward trend in the receivables turnover ratio for Werner Enterprises, Inc. in 2023 reflects effective credit management and collection efforts, contributing to the company's financial stability and operational efficiency.