Commercial Metals Company (CMC)
Receivables turnover
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,776,260 | 5,541,700 |
| Receivables | US$ in thousands | 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 | 1,016,090 | 1,014,160 |
| Receivables turnover | 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 | 5.68 | 5.46 |
February 29, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,364,790K ÷ $1,118,510K
= 7.48
The receivables turnover ratio for Commercial Metals Company has been relatively consistent over the time period analyzed, ranging from a low of 5.46 to a high of 7.48. The average receivables turnover ratio over this period is approximately 6.61. This indicates that, on average, Commercial Metals Company collects its accounts receivable approximately 6.61 times per year.
A higher receivables turnover ratio typically indicates that a company has a more efficient accounts receivable management process, meaning it is collecting payments from customers more quickly. On the other hand, a lower ratio may suggest that the company is facing challenges in collecting payments promptly.
Overall, the consistent range of the receivables turnover ratio for Commercial Metals Company suggests that the company has been effectively managing its accounts receivable over the analyzed period. However, it would be beneficial for the company to compare its receivables turnover ratio with that of industry peers to gain a better understanding of its performance in this area.
Peer comparison
Feb 29, 2024