Astec Industries Inc (ASTE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,332,400 | 1,271,800 | 1,095,400 | 1,030,400 | 1,167,370 |
| Receivables | US$ in thousands | 152,700 | 173,600 | 141,700 | 115,900 | 120,300 |
| Receivables turnover | 8.73 | 7.33 | 7.73 | 8.89 | 9.70 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,332,400K ÷ $152,700K
= 8.73
The receivables turnover ratio of Astec Industries Inc. has fluctuated over the past five years. In 2023, the company's receivables turnover ratio increased to 8.76 from 7.34 in 2022. This indicates that the company's accounts receivable turnover improved, suggesting that they collected their outstanding receivables more efficiently relative to the previous year.
Although the 2023 ratio was higher than in 2022, it was lower than the ratios reported in 2019 and 2020. This suggests that Astec Industries Inc. had previously been more effective in collecting their receivables. Despite the improvement from 2022 to 2023, the company may want to continue monitoring and potentially working on enhancing their accounts receivable collection process to align with past performance levels.
Overall, a higher receivables turnover ratio indicates that a company is collecting its outstanding receivables more quickly, which can be a positive sign of efficient credit management and strong customer payment practices. However, it is essential for Astec Industries Inc. to assess and compare its receivables turnover ratio with industry benchmarks to evaluate its effectiveness in managing accounts receivable.
Peer comparison
Dec 31, 2023