Alamo Group Inc (ALG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,689,650 | 1,513,620 | 1,334,220 | 1,163,470 | 1,119,140 |
| Receivables | US$ in thousands | 362,061 | 318,497 | 239,636 | 215,462 | 250,744 |
| Receivables turnover | 4.67 | 4.75 | 5.57 | 5.40 | 4.46 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,689,650K ÷ $362,061K
= 4.67
The receivables turnover ratio of Alamo Group Inc. has exhibited some fluctuations over the past five years. The company's ability to convert its accounts receivable into cash has shown a decreasing trend from 5.57 in 2021 to 4.67 in 2023. This could indicate that Alamo Group Inc. is taking longer to collect payments from its customers in recent years.
Despite the decrease in the ratio, Alamo Group Inc. generally maintained a healthy level of receivables turnover above 4. This suggests that the company efficiently manages its accounts receivable and collects payments from customers in a reasonable timeframe. However, the downward trend in the ratio should be monitored to ensure that it does not further deteriorate, as it could potentially signal issues with credit policies, collection procedures, or customer solvency.
Peer comparison
Dec 31, 2023