Cal-Maine Foods Inc (CALM)
Receivables turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,261,882 | 3,799,011 | 3,022,120 | 2,778,385 | 2,695,590 | 2,584,704 | 2,467,149 | 2,222,959 | 1,979,227 | 2,138,004 | 2,303,450 | 2,834,197 | 3,378,493 | 3,491,513 | 3,606,434 | 3,267,285 | 2,922,859 | 2,714,123 | 2,503,481 | 2,322,622 |
| Receivables | US$ in thousands | 272,361 | 428,398 | 317,751 | 282,551 | 162,442 | 162,442 | 246,622 | 246,622 | 199,162 | 199,162 | 159,150 | 159,150 | 187,213 | 187,213 | 249,867 | 249,867 | 305,111 | 305,111 | 220,364 | 220,364 |
| Receivables turnover | 15.65 | 8.87 | 9.51 | 9.83 | 16.59 | 15.91 | 10.00 | 9.01 | 9.94 | 10.73 | 14.47 | 17.81 | 18.05 | 18.65 | 14.43 | 13.08 | 9.58 | 8.90 | 11.36 | 10.54 |
May 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,261,882K ÷ $272,361K
= 15.65
The receivables turnover ratio for Cal-Maine Foods Inc exhibits notable fluctuations over the observed periods, reflecting variations in the company's efficiency in collecting accounts receivable. Beginning with a ratio of 10.54 in late August 2022, the ratio increased slightly by the end of August 2022 to 11.36, indicating a relatively efficient collection process at that time. Subsequently, the ratio dipped to 8.90 by late November 2022 and modestly recovered to 9.58 at the end of November 2022, suggesting some challenges or seasonal effects impacting receivables collection efficiency.
A significant upward trend is observed from February 2023 onward, with the ratio escalating to 13.08 by late February 2023 and reaching as high as 18.65 in mid-May 2023. This upward movement indicates an improved efficiency in collecting receivables, possibly due to better credit policies or faster collection cycles. However, after this peak, the ratio experienced a slight decline, settling at 18.05 in early June 2023 before decreasing further to 17.81 in late August 2023 and 14.47 in early September 2023. The downward trajectory during this period suggests a potential loosening of credit terms, slower collection rates, or increased accounts receivable balances.
In the subsequent months, the ratio declined further to 10.73 in late November 2023 and slightly decreased again to 9.94 by early December 2023. The ratio continued its downward trend through early 2024, reaching approximately 9.01 in late February 2024 before rising modestly to 10.00 in early March 2024. The recovery was short-lived, as the ratio again increased to 15.91 by the end of May 2024 and 16.59 in early June 2024, suggesting renewed collection efficiency.
However, this upward trend did not persist, as by late August 2024 and into late November 2024, the ratio decreased again to around 9.83 and 9.51, respectively. Further declines were observed in early 2025, with ratios at 8.87 in late February 2025, before rebounding slightly to 15.65 in late May 2025.
Overall, the receivables turnover ratio depicts cyclical patterns, reflecting periods of improved collection efficiency interspersed with phases of slower collections. The variations could be attributed to tactical changes in credit policies, seasonal sales fluctuations, economic conditions impacting customer payment behaviors, or other operational factors. The recent data indicating ratios near 9 suggest a relatively slower collection process, emphasizing areas for potential improvement in receivables management to enhance cash flow and working capital efficiency.