ESCO Technologies Inc (ESE)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 947,264 | 852,649 | 715,135 | 728,985 | 816,796 |
| Receivables | US$ in thousands | 198,600 | 164,645 | 146,341 | 144,082 | 174,427 |
| Receivables turnover | 4.77 | 5.18 | 4.89 | 5.06 | 4.68 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $947,264K ÷ $198,600K
= 4.77
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is collecting payments more quickly, while a lower ratio may suggest potential issues with collecting receivables.
Esco Technologies, Inc.'s receivables turnover ratio has fluctuated over the past five years, ranging from 4.66 in 2019 to 5.21 in 2022. The ratio for the most recent fiscal year, ending on September 30, 2023, was 4.81.
The trend shows a mild decline in receivables turnover, indicating a slight decrease in the efficiency of collecting payments from customers. While the 2023 ratio is lower than the peak ratio in 2022, it is higher than the 2019 figure. This suggests that although there has been a recent dip, the company's receivables turnover remains relatively healthy compared to five years ago.
Further analysis would involve understanding the company's credit policies, the effectiveness of its collections department, and the industry average for receivables turnover to determine the significance of the change and its potential impact on the company's overall financial health.
Peer comparison
Sep 30, 2023