Arcosa Inc (ACA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,307,900 | 2,242,800 | 2,036,400 | 1,935,600 | 1,736,900 |
| Receivables | US$ in thousands | 357,100 | 334,200 | 310,800 | 260,200 | 200,000 |
| Receivables turnover | 6.46 | 6.71 | 6.55 | 7.44 | 8.68 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,307,900K ÷ $357,100K
= 6.46
Over the past five years, Arcosa Inc's receivables turnover ratio has fluctuated. The ratio declined from 8.68 in 2019 to 6.46 in 2023, indicating a decrease in the efficiency of collecting receivables from customers. A lower receivables turnover ratio suggests that the company is taking longer to collect payments from customers, which can impact cash flow and liquidity.
However, it's important to note that the ratio has been relatively stable around the 6 to 7 range in the recent years, with 2022 showing a slight increase compared to 2023. This indicates that Arcosa has been able to maintain a reasonable level of efficiency in collecting receivables despite the downward trend in the ratio.
Overall, the trend in Arcosa Inc's receivables turnover ratio suggests that the company should continue monitoring its accounts receivable management to ensure timely collection of outstanding payments and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023