Fortrea Holdings Inc. (FTRE)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,646,300 | 2,690,400 | 2,756,600 | 2,905,600 |
| Receivables | US$ in thousands | 151,700 | 119,200 | 55,500 | 353,900 |
| Receivables turnover | 17.44 | 22.57 | 49.67 | 8.21 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,646,300K ÷ $151,700K
= 17.44
The receivables turnover ratio for Fortrea Holdings Inc. indicates the efficiency at which the company is able to collect outstanding receivables from its customers during a specific period.
Looking at the data provided, we observe fluctuations in the receivables turnover ratio over the four quarters in 2024. In March 31, 2024, the company had a receivables turnover ratio of 8.21, showcasing that the company collected its receivables approximately 8.21 times during that period.
The ratio significantly increased to 49.67 in June 30, 2024, suggesting a substantial improvement in the efficiency of collecting receivables from customers. However, this sharp increase could be due to various factors such as seasonal fluctuations, changes in customer payment behavior, or specific collection efforts during that quarter.
In the subsequent quarters, the receivables turnover ratio decreased to 22.57 in September 30, 2024, and further to 17.44 in December 31, 2024. While these values are lower than the peak in June 30, 2024, they still indicate a reasonable ability to collect receivables efficiently.
Overall, the fluctuations in Fortrea Holdings Inc.'s receivables turnover ratio throughout 2024 suggest variations in the company's accounts receivable management. Further investigation into the reasons behind these fluctuations and comparison with industry benchmarks would provide more insights into the company's collection efficiency and financial performance.
Peer comparison
Dec 31, 2024