Axalta Coating Systems Ltd. Common Shares(Axta) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for AXTA compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', AXTA's receivables turnover was 4.71, showing efficiency in collecting outstanding receivables. Industry average for Paints/Coatings in '2021' stood at 4.94.
• In '2022', AXTA's receivables turnover was 4.87, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Paints/Coatings in '2022' stood at 4.88. Industry average declined by 0.05 from previous year.
• In '2023', AXTA's receivables turnover was 4.45, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Paints/Coatings in '2023' stood at 4.85. Industry average declined by 0.04 from previous year.
• In '2024', AXTA's receivables turnover was 4.21, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Paints/Coatings in '2024' stood at 4.84. Industry average declined by 0.01 from previous year.
Overall, AXTA's receivables turnover has consistently declined during the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.