Acuity Brands Inc (AYI)
Receivables turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,913,100 | 3,981,400 | 3,461,000 | 3,326,300 | 3,672,700 |
| Receivables | US$ in thousands | 555,300 | 665,900 | 571,800 | 500,300 | 561,000 |
| Receivables turnover | 7.05 | 5.98 | 6.05 | 6.65 | 6.55 |
August 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,913,100K ÷ $555,300K
= 7.05
The receivables turnover ratio measures the efficiency of a company in collecting its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing Acuity Brands, Inc.'s receivables turnover over the past five years, we can see a fluctuating trend. In 2019, the receivables turnover was 6.55, indicating that the company collected its receivables 6.55 times during the year. This ratio increased to 6.65 in 2020, suggesting a slight improvement in the collection efficiency.
However, in 2021, the receivables turnover remained relatively stable at 6.05, showing a slight decrease compared to the previous year. Subsequently, there was a substantial increase to 6.02 in 2022. This lower turnover ratio could indicate a longer collection period for receivables during the year.
The most recent data for 2023 shows a significant improvement in receivables turnover, with a ratio of 7.12, signifying that Acuity Brands, Inc. collected its receivables more frequently compared to the prior year.
It is essential to consider the industry benchmarks and the company's specific circumstances when interpreting these ratios. While the increasing trend from 2022 to 2023 is positive, a more detailed analysis of the reasons behind these fluctuations would provide further insight into the effectiveness of Acuity Brands, Inc.'s accounts receivable management.
Peer comparison
Aug 31, 2023