FTI Consulting Inc (FCN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,489,240 | 3,028,910 | 2,776,220 | 2,461,280 | 2,352,720 |
| Receivables | US$ in thousands | 1,569,690 | 1,270,580 | 1,070,560 | 1,028,450 | 1,190,030 |
| Receivables turnover | 2.22 | 2.38 | 2.59 | 2.39 | 1.98 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,489,240K ÷ $1,569,690K
= 2.22
The receivables turnover for FTI Consulting Inc. has exhibited a declining trend over the past five years, decreasing from 3.19 in 2019 to 3.04 in 2023. This indicates that the company is taking slightly longer to collect its accounts receivable in recent years. Despite the decrease, FTI Consulting Inc. is still able to convert its accounts receivable into cash approximately three times a year on average, reflecting decent efficiency in its collection process.
The variations in receivables turnover may suggest changes in the company's credit policies, customer payment behaviors, or the effectiveness of its collection efforts. It is essential for FTI Consulting Inc. to closely monitor and manage its accounts receivable turnover to ensure the liquidity and financial health of the company. Further analysis and comparison with industry benchmarks could provide additional insights into the company's receivables management performance.
Peer comparison
Dec 31, 2023