Forward Air Corporation (FWRD)

Receivables turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,571,371	1,711,459	1,809,146	1,923,575	1,965,894	1,946,041	1,856,214	1,761,536	1,655,923	1,547,601	1,460,946	1,323,276	1,269,573	1,238,888	1,220,574	1,241,783	1,215,187	1,252,092	1,269,784	1,297,240
Receivables	US$ in thousands	158,675	191,758	175,968	201,385	221,028	247,730	246,110	236,666	216,182	205,165	209,187	186,504	156,490	153,070	130,759	143,234	150,197	157,494	154,715	150,623
Receivables turnover		9.90	8.93	10.28	9.55	8.89	7.86	7.54	7.44	7.66	7.54	6.98	7.10	8.11	8.09	9.33	8.67	8.09	7.95	8.21	8.61

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,571,371K ÷ $158,675K
= 9.90

The receivables turnover for Forward Air Corporation has shown fluctuation over the past few quarters, ranging from a low of 6.98 in June 2021 to a high of 10.28 in June 2023. The overall trend appears to be improving, as the receivables turnover has generally increased since the low point in June 2021.

This indicates that Forward Air Corporation is collecting its accounts receivable more efficiently in recent quarters. A higher receivables turnover ratio suggests that the company is collecting payments from its customers more quickly, which is a positive sign for its liquidity and cash flow management.

It is also worth noting that the receivables turnover ratio has consistently exceeded 7.00 in the past few quarters, indicating that Forward Air Corporation has been effectively managing its accounts receivable and converting them into cash within a relatively short period.

Overall, the trend of increasing receivables turnover and consistently strong ratios suggest that Forward Air Corporation has been successful in managing its accounts receivable effectively and improving its cash flow position.