Cavco Industries Inc (CVCO)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,794,790 | 2,142,710 | 1,627,160 | 1,108,050 | 1,061,770 |
| Receivables | US$ in thousands | 77,123 | 106,366 | 117,063 | 89,750 | 43,566 |
| Receivables turnover | 23.27 | 20.14 | 13.90 | 12.35 | 24.37 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,794,790K ÷ $77,123K
= 23.27
Cavco Industries Inc's receivables turnover ratio has displayed variability over the past five years. The ratio has generally shown an increasing trend, from 24.37 in March 2020 to 23.27 in March 2024. This indicates that the company is collecting its accounts receivable more efficiently each year.
A higher receivables turnover ratio suggests that Cavco Industries is able to quickly convert its accounts receivable into cash, indicating effective credit policies and efficient collection procedures. This can lead to improved cash flow and liquidity for the company.
The fluctuation in the receivables turnover ratio between 2018 and 2020 may be due to changes in the company's credit terms, customer payment behavior, or sales volume. It is important for stakeholders to further analyze the reasons behind these fluctuations to assess the overall effectiveness of Cavco Industries' accounts receivable management strategies.