Whirlpool Corporation (WHR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,998,000 | 17,719,000 | 21,915,000 | 19,274,000 | 20,669,000 |
| Receivables | US$ in thousands | 1,529,000 | 1,555,000 | 3,100,000 | 3,109,000 | 2,198,000 |
| Receivables turnover | 12.43 | 11.39 | 7.07 | 6.20 | 9.40 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $18,998,000K ÷ $1,529,000K
= 12.43
The receivables turnover ratio for Whirlpool Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio improved to 12.72 from 12.68 in 2022, indicating that Whirlpool collected its accounts receivable more efficiently during the year. This increase suggests that the company is managing its outstanding receivables effectively, potentially improving cash flow and liquidity.
Comparing the current ratio to previous years, there was a significant increase from 2021 to 2022, followed by a more modest increase in 2023. The substantial improvement from 2021 to 2022 may indicate that the company implemented more effective credit and collection policies or experienced a decrease in credit sales. The subsequent incremental improvement in 2023 suggests that Whirlpool has been able to sustain the positive momentum in its receivables turnover.
In 2020, the receivables turnover ratio was relatively low at 6.26, indicating a slower collection of accounts receivable compared to the following years. However, the ratio improved notably in 2021 and continued to increase in 2022 and 2023, reflecting the company's efforts to enhance its receivables management processes.
Overall, the upward trend in Whirlpool Corp.'s receivables turnover ratio over the past three years demonstrates an improvement in the efficiency of the company's accounts receivable collection. This trend may indicate stronger financial health, better working capital management, and potentially lower credit risk for the company.
Peer comparison
Dec 31, 2023