Equifax Inc (EFX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,020,200 | 4,937,400 | 4,775,900 | 3,978,400 | 3,392,900 |
| Receivables | US$ in thousands | 908,200 | 857,700 | 727,600 | 630,600 | 532,100 |
| Receivables turnover | 5.53 | 5.76 | 6.56 | 6.31 | 6.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,020,200K ÷ $908,200K
= 5.53
The receivables turnover of Equifax, Inc. has fluctuated over the past five years. The company's ability to collect on its accounts receivable improved from 2019 to 2021, with the turnover ratio increasing from 6.59 to 6.77. However, there was a slight decline in 2022 and 2023, with the turnover ratios dropping to 5.97 and 5.80, respectively.
A high receivables turnover ratio indicates that Equifax is efficient in collecting payments from its customers and converting credit sales into cash quickly. Despite the slight decrease in recent years, the company has generally maintained a healthy turnover ratio above 5, suggesting effective management of its accounts receivable.
It is essential for Equifax to continue monitoring and managing its receivables effectively to ensure liquidity and profitability in the long term. Further analysis into the reasons behind the fluctuations in the turnover ratio could provide insights into the company's credit policies, customer payment behaviors, and overall financial health.