Waste Management Inc (WM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,878,000 | 19,294,000 | 17,348,000 | 14,701,000 | 14,912,000 |
| Receivables | US$ in thousands | 2,870,000 | 2,752,000 | 2,546,000 | 2,624,000 | 1,949,000 |
| Receivables turnover | 6.93 | 7.01 | 6.81 | 5.60 | 7.65 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,878,000K ÷ $2,870,000K
= 6.93
The receivables turnover ratio for Waste Management, Inc. has remained relatively stable over the past five years, ranging from 5.80 to 7.16. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers during a specific period.
A higher receivables turnover ratio generally implies that the company is more efficient in collecting payments from its customers, which can be a sign of strong management of accounts receivable and effective credit policies.
In the case of Waste Management, Inc., the average receivables turnover ratio over the five-year period is approximately 6.76, suggesting that the company has been consistently effective in converting its accounts receivable into cash. This indicates a healthy liquidity position and efficient management of its receivables.
Overall, the stable and relatively high receivables turnover ratio of Waste Management, Inc. over the past five years reflects positively on the company's ability to collect payments from its customers in a timely manner.
Peer comparison
Dec 31, 2023