Edgewell Personal Care Co (EPC)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,253,700 | 2,251,600 | 2,171,700 | 2,087,300 | 1,949,700 |
| Receivables | US$ in thousands | 164,100 | 168,800 | 177,500 | 199,400 | 205,500 |
| Receivables turnover | 13.73 | 13.34 | 12.23 | 10.47 | 9.49 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,253,700K ÷ $164,100K
= 13.73
The trend in Edgewell Personal Care Co's receivables turnover ratio over the five-year period from September 30, 2020, to September 30, 2024, shows a consistent improvement. The receivables turnover ratio measures how efficiently a company manages its receivables by indicating how many times during a period the receivables are collected and replaced.
From September 30, 2020, to September 30, 2024, the receivables turnover ratio increased from 9.49 to 13.73. This signifies that the company's ability to collect receivables improved steadily over this period.
The higher receivables turnover indicates that Edgewell Personal Care Co has been more effective in collecting payments from customers, converting credit sales into cash more quickly. This could be attributable to better credit management practices, tighter credit policies, improved collection processes, or enhanced customer creditworthiness.
Overall, the increasing trend in receivables turnover for Edgewell Personal Care Co is a positive sign of efficiency in managing its accounts receivables, which can positively impact the company's cash flow and overall financial health.
Peer comparison
Sep 30, 2024