Commercial Metals Company (CMC)
Receivables turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,759,230 | 9,122,140 | 6,669,820 | 5,420,640 | 5,761,080 |
| Receivables | US$ in thousands | 1,240,220 | 1,358,910 | 1,105,580 | 880,728 | 1,016,090 |
| Receivables turnover | 7.06 | 6.71 | 6.03 | 6.15 | 5.67 |
August 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,759,230K ÷ $1,240,220K
= 7.06
The receivables turnover ratio of Commercial Metals Co. has exhibited a consistent upward trend over the past five years, reflecting the company's improved efficiency in converting its accounts receivable into cash. The ratio increased from 5.74 in 2019 to 7.10 in 2023, indicating that the company has been able to collect its outstanding receivables more frequently. This trend suggests that Commercial Metals Co. has effectively managed its credit policies and collection procedures, leading to a shorter average collection period. It also indicates the company's ability to generate cash from its credit sales, highlighting its strong liquidity position. Overall, the increasing receivables turnover ratio signifies improved efficiency in managing the company's accounts receivable and reflects positively on its working capital management.
Peer comparison
Aug 31, 2023