Aecom Technology Corporation (ACM)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,378,500 | 13,148,200 | 13,340,900 | 13,240,000 | 13,642,500 |
| Receivables | US$ in thousands | 3,075,390 | 2,897,290 | 3,228,050 | 3,425,720 | 3,517,070 |
| Receivables turnover | 4.68 | 4.54 | 4.13 | 3.86 | 3.88 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,378,500K ÷ $3,075,390K
= 4.68
The receivables turnover ratio measures the efficiency of a company in collecting its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more efficiently.
For AECOM, the receivables turnover ratio has shown a fluctuating trend over the past five years. In 2019, the ratio was 5.66, reflecting strong efficiency in collecting receivables. However, there was a decrease in 2020 to 4.56, indicating a potential issue with collecting receivables efficiently.
The ratio improved in 2021 to 4.95 and continued to increase in 2022 to 5.46, demonstrating enhanced efficiency in collecting receivables. Moreover, in 2023, AECOM's receivables turnover ratio further increased to 5.62, signifying an even stronger ability to collect receivables efficiently.
Overall, the upward trend in the receivables turnover ratio for AECOM from 2020 to 2023 suggests that the company has been managing its accounts receivable more effectively, possibly by improving its credit policies, enhancing collection efforts, or managing its customer base more efficiently. This improvement in efficiency is indicative of a positive trend in the company's financial management and operations.
Peer comparison
Sep 30, 2023