ArcBest Corp (ARCB)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,183,830	4,422,890	5,336,500	3,996,140	2,942,940
Receivables	US$ in thousands	430,893	482,246	592,382	595,438	335,213
Receivables turnover		9.71	9.17	9.01	6.71	8.78

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,183,830K ÷ $430,893K
= 9.71

Based on the data provided for ArcBest Corp, the receivables turnover ratio has fluctuated over the past five years. The ratio was 8.78 in December 2020, decreased to 6.71 in December 2021, and then showed an increasing trend over the following years, reaching 9.01 in December 2022, 9.17 in December 2023, and 9.71 in December 2024.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. The increasing trend in the receivables turnover ratio over the years suggests that ArcBest Corp has been improving its collection process, turning its accounts receivable into cash at a faster pace.

However, it is important to note that a very high receivables turnover ratio could also indicate a very strict credit policy that might lead to potential sales loss. Therefore, it is crucial for ArcBest Corp to strike a balance between efficient collections and maintaining good customer relationships.