CDW Corp (CDW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,149,400 | 23,513,000 | 20,669,900 | 18,312,600 | 17,873,000 |
| Receivables | US$ in thousands | 5,038,000 | 4,950,400 | 4,934,900 | 3,592,100 | 3,397,300 |
| Receivables turnover | 4.20 | 4.75 | 4.19 | 5.10 | 5.26 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $21,149,400K ÷ $5,038,000K
= 4.20
The receivables turnover ratio for CDW Corp has fluctuated over the past five years. It decreased from 5.31 in 2019 to 4.22 in 2021 before increasing to 4.80 in 2022 and then slightly declining to 4.24 in 2023. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. Conversely, a lower ratio may suggest issues with collections or an increase in credit sales. CDW Corp's receivables turnover ratio has generally remained above 4, indicating that the company has been efficient in converting its accounts receivable into cash over the years analyzed. However, the slight downward trend in recent years may warrant further analysis to ensure continued effectiveness in managing receivables.
Peer comparison
Dec 31, 2023