Fortune Brands Innovations Inc. (FBIN)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,609,000 | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 |
| Receivables | US$ in thousands | 514,400 | 534,200 | 521,800 | 885,700 | 734,900 |
| Receivables turnover | 8.96 | 8.66 | 9.05 | 5.42 | 4.93 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,609,000K ÷ $514,400K
= 8.96
Based on the data provided, the receivables turnover of Fortune Brands Innovations Inc. has shown an improving trend over the past few years. The ratio increased from 4.93 in 2020 to 5.42 in 2021, indicating that the company was able to convert its accounts receivable into cash more efficiently in 2021.
This improvement continued in the following years, with the receivables turnover reaching 9.05 in 2022, 8.66 in 2023, and 8.96 in 2024. These figures suggest that the company has been managing its accounts receivable effectively, collecting cash from customers at a faster pace.
A higher receivables turnover ratio typically signifies that the company has strong sales and collection practices in place. It indicates that Fortune Brands Innovations Inc. is efficient in collecting payments from its customers and converting credit sales into cash, which is a positive sign for its liquidity and financial health. The increasing trend in the receivables turnover ratio implies that the company's credit policies are effective, helping to maintain a healthy cash flow and working capital position.
Peer comparison
Dec 31, 2024