Carpenter Technology Corporation (CRS)

Receivables turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	2,756,000	3,797,300	3,802,500	3,757,400	3,628,400	2,335,500	2,122,700	1,929,400	1,783,800	1,653,000	1,518,600	1,473,100	1,423,200	1,447,900	1,686,200	1,913,600	2,166,400	2,370,500	2,391,900	2,373,400
Receivables	US$ in thousands	562,600	521,200	508,400	510,800	531,300	515,500	441,600	390,200	382,300	336,200	307,000	311,600	308,700	279,200	230,300	250,500	292,300	374,400	378,300	383,400
Receivables turnover		4.90	7.29	7.48	7.36	6.83	4.53	4.81	4.94	4.67	4.92	4.95	4.73	4.61	5.19	7.32	7.64	7.41	6.33	6.32	6.19

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,756,000K ÷ $562,600K
= 4.90

The receivables turnover ratio for Carpenter Technology Corporation has shown some fluctuations over the past 20 quarters. The ratio indicates how many times, on average, the company collects its accounts receivable during a specific period. A higher receivables turnover ratio generally indicates that the company is efficient in collecting payments from its customers.

Looking at the data provided, the receivables turnover ratio ranged from a low of 4.53 in March 2023 to a high of 7.64 in March 2020. There was a general upward trend in the ratio from the end of 2020 through the middle of 2024, indicating an improvement in the company's ability to collect payments from customers. This suggests that Carpenter Technology Corporation has been more effective in managing its accounts receivable over this period.

It is worth noting that a consistent and increasing trend in the receivables turnover ratio is usually considered positive, as it indicates that the company is converting its credit sales into cash more quickly. However, a significant fluctuation in the ratio may also indicate changes in business operations or customer payment patterns that should be further investigated.