Cal-Maine Foods Inc (CALM)

The receivables turnover ratio for Cal-Maine Foods Inc. exhibits notable fluctuations over the specified periods, providing insights into the company's efficiency in collecting accounts receivable.

As of May 31, 2023, the receivables turnover ratio was 16.81, indicating a relatively high frequency of collections within the fiscal year. This suggests that the company was effective in converting receivables into cash multiple times throughout that period. Slightly before this date, on June 3, 2023, the ratio remained essentially unchanged at 16.80, reaffirming the stability in collection efficiency during this timeframe.

By the end of the subsequent fiscal year, May 31, 2024, the receivables turnover ratio declined to 14.32. This decrease signifies a reduction in collection speed, implying that the company took longer to collect its receivables compared to the previous year. This slowing down could reflect changes in credit policies, customer payment behaviors, or operational challenges affecting collection processes. It is noteworthy that on June 1, 2024, the ratio persisted at the same level, indicating no immediate further deterioration or improvement within that period.

Looking ahead to May 31, 2025, the ratio rebounded somewhat to 15.65, suggesting a partial recovery in collection efficiency. Although this level remains below the earlier high of 16.81, the upward movement indicates an improvement in the company's ability to convert receivables into cash more swiftly than the prior year.

Overall, the receivables turnover trend for Cal-Maine Foods Inc. reflects periods of stability, a notable decline, followed by a partial recovery. The variation in ratios over these periods highlights shifts in collection practices or customer payment behaviors that warrant ongoing monitoring to assess their impact on liquidity and working capital management.