Rpc(Res) 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 RES 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', RES's receivables turnover was 2.73, showing efficiency in collecting outstanding receivables. Industry average for Oilfield Services/Equipment in '2021' stood at 3.89.
• In '2022', RES's receivables turnover was 4.13, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Oilfield Services/Equipment in '2022' stood at 4.76. Industry average increased by 0.88 compared to previous year.
• In '2023', RES's receivables turnover was 3.87, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oilfield Services/Equipment in '2023' stood at 4.58. Industry average declined by 0.18 from previous year.
• In '2024', RES's receivables turnover was 4.30, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Oilfield Services/Equipment in '2024' stood at 4.74. Industry average increased by 0.16 compared to previous year.
Overall, RES's receivables turnover has been volatile but showed an upward trend over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.