Cactus Inc (WHD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,090,880 | 692,436 | 438,080 | 349,742 | 629,748 |
| Receivables | US$ in thousands | 232,181 | 173,168 | 113,305 | 52,768 | 111,665 |
| Receivables turnover | 4.70 | 4.00 | 3.87 | 6.63 | 5.64 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,090,880K ÷ $232,181K
= 4.70
The receivables turnover ratio for Cactus Inc has fluctuated over the past five years, ranging from 3.87 to 6.63. This ratio measures how efficiently the company is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting receivables more quickly.
In 2023, the receivables turnover ratio improved to 4.70 from 4.00 in 2022, suggesting that the company was able to collect payments more efficiently during the year. This improvement may be attributed to tighter credit policies, more effective collections processes, or a stronger customer base.
Compared to 2021 and 2020, the receivables turnover ratio was also higher in 2023, indicating a positive trend in the company's receivables management. However, it was lower than the peak of 6.63 in 2020, suggesting that there may be room for further improvement in collecting receivables in a timely manner.
Overall, the increasing trend in the receivables turnover ratio for Cactus Inc indicates that the company has been more efficient in managing its accounts receivable turnover in recent years, which is a positive sign for its financial health and liquidity.
Peer comparison
Dec 31, 2023