Ultrapar Participacoes S.A. (New) ()(Ugp) 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 UGP 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', UGP's receivables turnover was 18.53, showing efficiency in collecting outstanding receivables. Industry average for Oil/Gas Transmission in '2021' stood at 4.68.
• In '2022', UGP's receivables turnover was 21.57, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Oil/Gas Transmission in '2022' stood at 4.59. Industry average declined by 0.09 from previous year.
• In '2023', UGP's receivables turnover was 16.34, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil/Gas Transmission in '2023' stood at 4.42. Industry average declined by 0.18 from previous year.
• In '2024', UGP's receivables turnover was 17.52, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Oil/Gas Transmission in '2024' stood at 6.84. Industry average increased by 2.43 compared to previous year.
Overall, UGP'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.