Commercial Metals Company (CMC)

Receivables turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	7,878,080	8,095,050	8,364,790	8,536,410	8,759,370	9,226,700	9,389,600	9,361,170	9,117,680	8,467,780	7,801,570	7,252,900	6,656,150	6,046,880	5,534,950	5,430,800	5,429,840	5,563,710	5,833,520	5,888,080
Receivables	US$ in thousands	1,158,950	1,182,270	1,118,510	1,216,350	1,240,220	1,244,650	1,263,550	1,287,290	1,358,910	1,330,280	1,153,870	1,095,610	1,105,580	1,073,120	895,604	869,052	880,728	880,602	961,694	961,458
Receivables turnover		6.80	6.85	7.48	7.02	7.06	7.41	7.43	7.27	6.71	6.37	6.76	6.62	6.02	5.63	6.18	6.25	6.17	6.32	6.07	6.12

August 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,878,080K ÷ $1,158,950K
= 6.80

The receivables turnover ratio for Commercial Metals Company has fluctuated over the past several quarters. The ratio measures how efficiently the company is able to collect payment on its credit sales within a given period.

The downward trend observed from the most recent quarter in August 2024 (6.80) to the previous quarter in May 2024 (6.85) indicates a slight decrease in the speed at which the company is collecting its receivables.

However, the historical data reveals that the company has generally maintained a healthy receivables turnover ratio above 6. This implies that Commercial Metals Company is efficient in managing its accounts receivable and collecting payments from customers.

It's worth noting that the ratio peaked in February 2024 at 7.48, suggesting an exceptional performance in receivables turnover during that period. Overall, while there have been fluctuations in the ratio, the company's ability to efficiently convert its credit sales into cash remains relatively stable and satisfactory.