Williams Companies Inc (WMB)
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 | 10,907,000 | 11,053,000 | 11,515,000 | 11,522,000 | 10,965,000 | 11,292,000 | 10,746,000 | 10,539,000 | 10,627,000 | 9,462,000 | 8,920,000 | 8,418,000 | 7,719,000 | 7,734,000 | 7,800,000 | 8,060,000 | 8,201,000 | 8,298,000 | 8,602,000 | 8,652,000 |
| Receivables | US$ in thousands | 1,655,000 | 1,419,000 | 1,362,000 | 1,524,000 | 2,723,000 | 2,659,000 | 2,784,000 | 1,973,000 | 1,978,000 | 1,986,000 | 999,000 | 1,058,000 | 999,000 | 1,011,000 | 907,000 | 930,000 | 996,000 | 875,000 | 879,000 | 929,000 |
| Receivables turnover | 6.59 | 7.79 | 8.45 | 7.56 | 4.03 | 4.25 | 3.86 | 5.34 | 5.37 | 4.76 | 8.93 | 7.96 | 7.73 | 7.65 | 8.60 | 8.67 | 8.23 | 9.48 | 9.79 | 9.31 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,907,000K ÷ $1,655,000K
= 6.59
Analyzing the receivables turnover ratio of Williams Cos Inc over the past eight quarters reveals fluctuations in the effectiveness of the company in collecting cash from its credit sales.
The receivables turnover ratio has shown an increasing trend from Q2 2022 to Q3 2023, indicating an improvement in the company's collection efficiency. Specifically, the ratio increased from 3.86 in Q2 2022 to 8.45 in Q2 2023. This significant increase suggests that the company has been able to convert its outstanding receivables into cash at a higher rate over time.
However, there was a slight dip in Q4 2023, with the ratio dropping to 6.59. This could indicate a slowdown in the collection of accounts receivable during that period. It is important for the company to closely monitor this trend to ensure timely collection and maintain healthy cash flows.
Overall, the upward trend in the receivables turnover ratio demonstrates an improvement in Williams Cos Inc's accounts receivable management efficiency. The company should continue to focus on optimizing its collections process to ensure steady cash flows and financial stability.
Peer comparison
Dec 31, 2023