ESCO Technologies Inc (ESE)
Receivables turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 959,068 | 947,264 | 931,693 | 903,174 | 880,215 | 852,649 | 802,596 | 765,775 | 728,079 | 714,210 | 717,564 | 707,792 | 720,752 | 727,651 | 756,279 | 782,930 | 797,707 | 810,997 | 805,425 | 799,855 |
| Receivables | US$ in thousands | 194,400 | 198,600 | 192,146 | 180,817 | 159,658 | 164,645 | 168,720 | 140,497 | 135,874 | 146,341 | 135,343 | 124,580 | 143,675 | 144,082 | 138,080 | 157,050 | 160,714 | 174,427 | 168,675 | 159,923 |
| Receivables turnover | 4.93 | 4.77 | 4.85 | 4.99 | 5.51 | 5.18 | 4.76 | 5.45 | 5.36 | 4.88 | 5.30 | 5.68 | 5.02 | 5.05 | 5.48 | 4.99 | 4.96 | 4.65 | 4.78 | 5.00 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $959,068K ÷ $194,400K
= 4.93
The receivables turnover of Esco Technologies, Inc. has exhibited some fluctuations over the past eight quarters, with values ranging from 4.77 to 5.55. The average receivables turnover ratio over this period is approximately 5.04, indicating that, on average, the company collects its accounts receivable five times a year.
The declining trend from Q1 2023 (5.55) to Q3 2023 (4.89) suggests a lengthening in the collection period during this time. However, there was a slight increase in Q4 2023 (4.81) and Q1 2024 (4.98), which may indicate some improvement in collecting receivables efficiently.
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is generally a positive sign. Conversely, a lower ratio may suggest potential issues with collecting outstanding payments.
It is essential for Esco Technologies, Inc. to monitor its receivables turnover ratio regularly to ensure that it maintains an optimal balance between collecting receivables promptly and maintaining good relationships with its customers. Analyzing trends in this ratio can provide valuable insights into the company's liquidity and efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023