Brunswick Corporation (BC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,401,400 | 6,812,200 | 5,846,200 | 4,347,500 | 4,108,400 |
| Receivables | US$ in thousands | 493,200 | 543,000 | 485,300 | 337,600 | 331,800 |
| Receivables turnover | 12.98 | 12.55 | 12.05 | 12.88 | 12.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,401,400K ÷ $493,200K
= 12.98
Analyzing Brunswick Corp.'s receivables turnover ratio over the past five years reveals a relatively stable performance in collecting outstanding receivables. The company's receivables turnover ratio has consistently ranged between 12.05 and 12.98 times annually. This indicates that, on average, Brunswick Corp. collects its accounts receivable approximately 12 times a year.
A higher receivables turnover ratio suggests that the company is efficient in converting its credit sales into cash, indicating effective management of its accounts receivable. This efficiency can result from prompt collection processes, stringent credit policies, or a high proportion of cash sales.
Overall, Brunswick Corp.'s consistent and relatively high receivables turnover ratio over the years reflects a healthy liquidity position and effective credit management practices, which is positive for the company's financial health and indicates its ability to efficiently manage its accounts receivable.
Peer comparison
Dec 31, 2023