The Chefs Warehouse Inc (CHEF)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,390,260 | 2,556,590 | 1,728,410 | 1,090,630 | 1,573,980 |
| Receivables | US$ in thousands | 334,015 | 260,167 | 172,540 | 96,383 | 175,044 |
| Receivables turnover | 10.15 | 9.83 | 10.02 | 11.32 | 8.99 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,390,260K ÷ $334,015K
= 10.15
The receivables turnover of The Chefs Warehouse Inc has shown a consistent trend of improvement over the past five years. The ratio increased from 8.99 in 2019 to 10.15 in 2023, indicating that the company has been able to collect its accounts receivable more efficiently over time.
A receivables turnover of 10.15 in 2023 means that, on average, the company collected its accounts receivable approximately 10.15 times during the year. This implies that the company is able to convert its accounts receivable into cash quickly, which is a positive indicator of its financial health.
The upward trend in receivables turnover ratio suggests that The Chefs Warehouse Inc has been managing its accounts receivable effectively, potentially improving its cash flow and liquidity position. However, it is important to monitor this ratio over time to ensure that the company continues to efficiently collect its receivables.
Peer comparison
Dec 31, 2023