Forward Air Corporation (FWRD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,337,060 | 1,959,900 | 1,652,200 | 1,269,570 | 1,215,190 |
| Receivables | US$ in thousands | 158,675 | 221,028 | 216,182 | 156,490 | 150,197 |
| Receivables turnover | 8.43 | 8.87 | 7.64 | 8.11 | 8.09 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,337,060K ÷ $158,675K
= 8.43
The receivables turnover ratio for Forward Air Corporation has fluctuated over the past five years. In comparing the data from December 31 of each year, the company's receivables turnover ratio was 8.43 in 2023, which decreased from 8.87 in 2022 but was higher than the ratios in 2021 (7.64), 2020 (8.11), and 2019 (8.09).
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. The slight decrease from 2022 to 2023 could suggest a longer collection period in 2023 compared to the previous year. However, the company's receivables turnover ratio has generally been consistent and relatively high over the past five years, indicating that Forward Air Corporation has been effectively managing its accounts receivable and converting them into cash.
Overall, the trend in the receivables turnover ratio suggests that Forward Air Corporation has been successful in collecting its outstanding receivables promptly, which is a positive indicator of its financial health and operational efficiency in managing its credit sales.
Peer comparison
Dec 31, 2023