ArcBest Corp (ARCB)

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	4,182,550	4,265,140	4,329,760	4,354,670	4,493,120	4,653,130	4,876,850	5,166,410	5,326,350	5,274,290	4,938,980	4,495,079	3,997,842	3,620,356	3,398,646	3,076,929	2,942,547	2,843,551	2,836,113	2,980,260
Receivables	US$ in thousands	430,893	436,108	441,357	445,106	482,246	480,474	440,730	481,925	592,382	638,564	678,284	698,309	595,438	438,833	373,782	358,008	335,213	338,224	289,947	294,059
Receivables turnover		9.71	9.78	9.81	9.78	9.32	9.68	11.07	10.72	8.99	8.26	7.28	6.44	6.71	8.25	9.09	8.59	8.78	8.41	9.78	10.13

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,182,550K ÷ $430,893K
= 9.71

The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. Higher turnover ratios generally indicate better liquidity and collection practices.

Analyzing the receivables turnover of ArcBest Corp over the period provided, we observe fluctuations in the ratio. From March 31, 2020, to June 30, 2020, the ratio decreased slightly from 10.13 to 9.78, indicating a minor slowdown in the collection of receivables. Subsequently, the ratio further dropped to 8.41 by September 30, 2020, indicating a longer collection period for accounts receivable.

There was a slight improvement in the turnover ratio by December 31, 2020, which increased to 8.78 before dropping to 8.59 by March 31, 2021. The ratio then increased to 9.09 by June 30, 2021, reflecting a quicker collection of receivables during that quarter.

However, the ratio fluctuated in the following periods, ranging from a low of 6.44 on March 31, 2022, to a high of 11.07 on June 30, 2023. These fluctuations could indicate changes in credit policies, customer payment behaviors, or economic conditions affecting the collection cycle.

Towards the end of the period, the receivables turnover ratio stabilized around the range of 9.71 to 9.81 from June 30, 2024, to December 31, 2024. This consistency in the turnover ratio suggests a relatively stable collection process for accounts receivable during those quarters.

Overall, while there were fluctuations in ArcBest Corp's receivables turnover ratio over the analyzed period, the company was able to maintain a reasonable level of efficiency in collecting its accounts receivable, with some periods showing improvements in collection practices.