Freshpet Inc (FRPT)
Receivables turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,014,577 | 975,177 | 927,889 | 875,143 | 823,221 | 766,894 | 717,307 | 668,019 | 630,695 | 595,344 | 545,380 | 501,637 | 464,246 | 425,489 | 394,142 | 370,742 | 342,106 | 318,790 | 300,020 | 281,096 |
| Receivables | US$ in thousands | 62,654 | 68,419 | 65,015 | 68,156 | 68,507 | 56,754 | 54,415 | 51,889 | 49,513 | 57,572 | 48,235 | 62,090 | 61,458 | 34,780 | 32,217 | 33,962 | 28,818 | 18,438 | 21,644 | 22,651 |
| Receivables turnover | 16.19 | 14.25 | 14.27 | 12.84 | 12.02 | 13.51 | 13.18 | 12.87 | 12.74 | 10.34 | 11.31 | 8.08 | 7.55 | 12.23 | 12.23 | 10.92 | 11.87 | 17.29 | 13.86 | 12.41 |
March 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,014,577K ÷ $62,654K
= 16.19
Analyzing the receivables turnover of Freshpet Inc. over the specified period reveals notable fluctuations and a general trend toward improvement. The receivables turnover ratio, which measures how effectively the company manages and collects its accounts receivable, ranged from a low of 7.55 times in the quarter ending March 31, 2022, to a peak of 17.29 times in the quarter ending December 31, 2020.
Between mid-2020 and late 2020, there was a steady increase in the ratio, indicating improved efficiency in collecting receivables, peaking at the end of 2020. Following this peak, the ratio experienced a decline to a low point in early 2022, suggesting potentially slower collection periods or changes in credit policies.
From early 2022 onward, there is a clear recovery pattern, with the ratio gradually increasing again. By September 2023, it reached 13.18, and it continued a slight upward trajectory, reaching 16.19 in March 2025. This sustained upward trend suggests improvements in receivables collection efficiency, possibly resulting from refined credit management, enhanced collections processes, or changes in customer payment behaviors.
Overall, the data indicates that Freshpet Inc. experienced periods of both efficiency gains and challenges in receivables management within this timeframe. The recent upward trend in the ratio implies a strengthening in the company's ability to convert receivables into cash more swiftly, highlighting operational improvements in receivables handling.
Peer comparison
Mar 31, 2025