Freshpet Inc (FRPT)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 975,177 | 766,895 | 595,344 | 425,489 | 318,790 |
| Receivables | US$ in thousands | 68,419 | 56,754 | 57,572 | 34,780 | 18,438 |
| Receivables turnover | 14.25 | 13.51 | 10.34 | 12.23 | 17.29 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $975,177K ÷ $68,419K
= 14.25
The receivables turnover ratio for Freshpet Inc. has exhibited notable variation over the observed period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio was 17.29, indicating that the company collected its average receivables approximately 17.3 times during that year. This high turnover suggests a relatively efficient collection process at that time.
By the end of 2021, the ratio declined to 12.23, reflecting a decrease in collection efficiency. This downward trend continued into 2022, with the ratio further decreasing to 10.34, indicating a potential slowdown in receivables collection or a change in credit policies or customer payment behaviors.
However, in the subsequent year, 2023, the receivables turnover improved to 13.51, signaling a partial recovery in collection efficiency. The ratio further increased slightly to 14.25 in 2024, approaching the earlier levels observed in 2020. The trend suggests a stabilization or marginal improvement in accounts receivable management during this period.
Overall, the data indicates that Freshpet Inc.'s receivables turnover experienced a dip in 2021 and 2022, followed by a trend toward normalization or improved collection practices in 2023 and 2024. These fluctuations may be related to changes in credit extension policies, customer creditworthiness, or broader market conditions affecting receivables collection cycles.
Peer comparison
Dec 31, 2024