Fortune Brands Innovations Inc. (FBIN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 | 5,764,600 |
| Receivables | US$ in thousands | 534,200 | 521,800 | 885,700 | 734,900 | 624,800 |
| Receivables turnover | 8.66 | 9.05 | 5.42 | 4.93 | 9.23 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,626,200K ÷ $534,200K
= 8.66
Fortune Brands Innovations Inc.'s receivables turnover ratio has fluctuated over the past five years. The company's ability to collect receivables improved in 2023 compared to 2022, with a receivables turnover of 8.66 times. This indicates that the company collected its outstanding receivables approximately 8.66 times during 2023.
In 2021 and 2020, the receivables turnover was 5.42 and 4.93 times, respectively, showcasing a decrease in the efficiency of collecting receivables during those years. However, the ratio improved significantly in 2019, reaching 9.23 times.
Overall, while the receivables turnover ratio varies annually, a higher turnover ratio generally indicates more efficient management of accounts receivable and quicker conversion of sales into cash. It is important for Fortune Brands Innovations Inc. to continue monitoring this ratio to ensure timely collection of receivables and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023