Smith AO Corporation (AOS)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,817,100 | 3,891,700 | 3,924,200 | 3,856,200 | 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 |
| Receivables | US$ in thousands | 541,400 | 558,200 | 649,900 | 584,600 | 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 |
| Receivables turnover | 7.05 | 6.97 | 6.04 | 6.60 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,817,100K ÷ $541,400K
= 7.05
Smith AO Corporation's receivables turnover ratio has been showing a generally increasing trend over the years, indicating the efficiency with which the company is collecting its accounts receivable. The ratio has fluctuated within a range of 4.90 to 7.05 from March 31, 2020, to December 31, 2024.
In the initial period, the receivables turnover was around 5.48 and has gradually increased, reaching a peak of 7.05 by December 31, 2024. This suggests that the company is getting better at collecting outstanding receivables more frequently within a given period.
The consistent improvement in the receivables turnover ratio reflects positively on the company's credit and collection policies, indicating efficient management of accounts receivable. A higher turnover ratio implies that the company is able to convert its receivables into cash more rapidly, reducing the risk of bad debts and improving cash flow management.
Overall, the increasing trend in the receivables turnover ratio signifies an improvement in the efficiency of Smith AO Corporation in managing its accounts receivable, which is a positive indicator of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024