Floor & Decor Holdings Inc (FND)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,406,710 | 4,256,060 | 3,431,300 | 2,421,130 | 2,039,070 |
| Receivables | US$ in thousands | 27,870 | 7,325 | 3,507 | — | 2,868 |
| Receivables turnover | 158.12 | 581.03 | 978.41 | — | 710.97 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,406,710K ÷ $27,870K
= 158.12
Floor & Decor Holdings Inc's receivables turnover has exhibited a fluctuating trend over the past five years. The ratio was 710.97 in 2019, significantly decreased to an exceptionally low 3.78 in 2020 but rebounded sharply to 978.41 in 2021 before slightly declining to 581.03 in 2022 and further dropping to 158.12 in 2023. This variation indicates significant changes in the company's ability to collect its accounts receivable efficiently.
The significant drop in receivables turnover from 2021 to 2022 suggests that the company might have experienced challenges in collecting payments from customers during that period, which could potentially lead to liquidity issues. However, the sharp increase from 2020 to 2021 indicates a strong improvement in the efficiency of collecting receivables, which is a positive sign for the company's cash flow management.
The steep decline in 2023 compared to the previous year could be a cause for concern as it indicates a potential slowdown in the collection of accounts receivable. This could be due to changes in credit policies, customer payment behavior, or other internal or external factors affecting the company's revenue collection cycle.
Overall, the fluctuating nature of Floor & Decor Holdings Inc's receivables turnover over the years highlights the importance of closely monitoring and managing accounts receivable to ensure optimal cash flow and financial health.
Peer comparison
Dec 31, 2023