Fox Factory Holding Corp (FOXF)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,448,180 | 1,598,830 | 1,289,730 | 880,113 | 748,041 |
| Receivables | US$ in thousands | 171,060 | 200,440 | 142,040 | 121,194 | 91,632 |
| Receivables turnover | 8.47 | 7.98 | 9.08 | 7.26 | 8.16 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,448,180K ÷ $171,060K
= 8.47
The receivables turnover ratio for Fox Factory Holding Corp has shown fluctuations over the past five years. The trend indicates the company's effectiveness in converting its accounts receivable into cash. A higher turnover ratio suggests that the company is efficient in collecting payments from customers and managing its credit sales effectively.
In 2023, the receivables turnover ratio improved to 8.47, indicating that Fox Factory Holding Corp collected its accounts receivable approximately 8.47 times during the year. This represents an increase from the previous year's ratio of 7.98, suggesting an enhancement in the company's receivables management efficiency.
Comparing the 2023 ratio to the historical trend, we observe that it is higher than the ratios for 2022 (7.98) and 2020 (7.26) but lower than the ratios for 2021 (9.08) and 2019 (8.16). The improvement from 2022 to 2023 aligns with a positive trend in accounts receivable management efficiency.
Overall, Fox Factory Holding Corp's receivables turnover ratio has generally been at a healthy level over the past five years, indicating effective credit management practices and timely collections. However, the company may benefit from further analysis to understand the factors contributing to the fluctuations in its receivables turnover ratios and maintain or improve its efficiency in managing accounts receivable in the future.
Peer comparison
Dec 31, 2023