Cal-Maine Foods Inc (CALM)
Receivables turnover
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,325,870 | 3,145,760 | 1,781,860 | 1,345,790 | 1,351,610 |
| Receivables | US$ in thousands | 162,442 | 187,213 | 219,404 | 126,639 | 98,375 |
| Receivables turnover | 14.32 | 16.80 | 8.12 | 10.63 | 13.74 |
June 1, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,325,870K ÷ $162,442K
= 14.32
The receivables turnover ratio measures how efficiently Cal-Maine Foods Inc is able to collect cash from its credit sales during a specific period. A higher turnover ratio indicates that the company is collecting its accounts receivable more frequently.
Looking at the trend over the past five years, we observe fluctuations in Cal-Maine Foods Inc's receivables turnover ratio. In June 2023, the ratio was at its highest at 16.80, reflecting that the company collected cash from its credit sales more rapidly. However, in May 2022, the ratio dropped to 8.12, suggesting a decrease in the efficiency of collecting accounts receivable during that period.
The most recent ratio as of June 1, 2024, stands at 14.32, indicating an improvement in comparison to the previous year but still slightly lower than the peak in 2023. Overall, Cal-Maine Foods Inc has demonstrated varying levels of efficiency in collecting cash from credit sales, and stakeholders may want to monitor this ratio to assess the company's effectiveness in managing its receivables in the future.