Smith AO Corporation (AOS)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,840,800 | 3,786,500 | 3,723,200 | 3,730,700 | 3,744,500 | 3,805,900 | 3,847,700 | 3,742,800 | 3,534,600 | 3,375,000 | 3,219,800 | 3,022,300 | 2,889,000 | 2,805,400 | 2,772,100 | 2,872,700 | 2,984,200 | 3,045,800 | 3,072,800 | 3,141,800 |
| Receivables | US$ in thousands | 596,000 | 587,400 | 588,900 | 586,800 | 581,200 | 564,200 | 621,500 | 608,300 | 634,400 | 623,800 | 607,000 | 534,500 | 585,000 | 572,900 | 515,900 | 524,000 | 589,500 | 614,100 | 634,800 | 658,800 |
| Receivables turnover | 6.44 | 6.45 | 6.32 | 6.36 | 6.44 | 6.75 | 6.19 | 6.15 | 5.57 | 5.41 | 5.30 | 5.65 | 4.94 | 4.90 | 5.37 | 5.48 | 5.06 | 4.96 | 4.84 | 4.77 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,840,800K ÷ $596,000K
= 6.44
The receivables turnover ratio for A.O. Smith Corp. has been fairly stable over the past eight quarters, ranging from 6.16 to 6.76. This ratio indicates that, on average, the company collected its accounts receivable approximately 6.4 times per year during this period. A higher turnover ratio is generally preferred as it signifies that the company is efficient in collecting payments from its customers. The slight fluctuations in the ratio could be attributed to seasonal variations or changes in the company's credit policies. Overall, A.O. Smith Corp. seems to be managing its accounts receivable effectively, maintaining a healthy balance between sales and collection activities.
Peer comparison
Dec 31, 2023