Topbuild Corp (BLD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 | 2,585,470 |
| Receivables | US$ in thousands | 799,009 | 836,071 | 668,419 | 427,340 | 428,844 |
| Receivables turnover | 6.41 | 5.92 | 5.15 | 6.29 | 6.03 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,121,100K ÷ $799,009K
= 6.41
The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher turnover ratio suggests that a company is collecting receivables more quickly.
TopBuild Corp's receivables turnover has varied over the past five years, ranging from 5.22 to 6.50. In 2023, the receivables turnover ratio was 6.50, indicating that the company collected its outstanding receivables approximately 6.50 times during the year. This represents an improvement compared to the previous year when the ratio was 5.99.
The trend in the receivables turnover ratio suggests that TopBuild Corp has generally been effective in managing its receivables over the past five years, with fluctuations likely influenced by factors such as changes in credit policies, customer payment behavior, and overall economic conditions.
Overall, a higher receivables turnover ratio is generally viewed positively as it indicates a quicker conversion of receivables into cash, which can improve liquidity and working capital management for the company.