Commercial Metals Company (CMC)
Receivables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,878,070 | 8,759,230 | 9,122,140 | 6,669,820 | 5,420,640 |
| Receivables | US$ in thousands | 1,158,950 | 1,240,220 | 1,358,910 | 1,105,580 | 880,728 |
| Receivables turnover | 6.80 | 7.06 | 6.71 | 6.03 | 6.15 |
August 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,878,070K ÷ $1,158,950K
= 6.80
The receivables turnover ratio for Commercial Metals Company has shown fluctuations over the past five years, ranging from 6.03 to 7.06. The ratio measures the company's efficiency in collecting outstanding receivables during a specific period. A higher ratio typically indicates that the company collects its receivables more quickly.
In 2023, the receivables turnover ratio was 7.06, representing a peak in efficiency in collecting receivables. Subsequently, the ratio decreased to 6.71 in 2022 before further declining to 6.03 in 2021. However, in the most recent year, 2024, there was a slight improvement in the receivables turnover ratio to 6.80.
Overall, while the company's receivables turnover ratio has shown some variability, it has generally remained in a relatively stable range. Management may seek to continuously monitor and improve this ratio to ensure efficient cash flow management and timely collections of outstanding receivables.
Peer comparison
Aug 31, 2024