Greif Bros Corporation (GEF)
Receivables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Receivables | US$ in thousands | 659,400 | 749,100 | 889,500 | 636,600 | 664,200 |
| Receivables turnover | 7.99 | 8.46 | 6.36 | 7.13 | 6.90 |
October 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,270,000K ÷ $659,400K
= 7.99
The receivables turnover ratio measures how efficiently a company collects its accounts receivable. It is calculated by dividing net credit sales by the average accounts receivable balance. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Based on the data provided for Greif Inc, we can observe fluctuations in the receivables turnover ratio over the past five years. In 2023, the receivables turnover ratio was 7.91, down from 8.48 in 2022. This indicates a slight decrease in the efficiency of collecting receivables compared to the previous year.
In 2021, the receivables turnover ratio was 6.25, showing a significant decline from the previous year. However, it bounced back in 2022, reaching 7.09, and remained relatively consistent in 2019 at 6.92.
Overall, while there have been fluctuations, Greif Inc has generally maintained a moderate to high level of efficiency in collecting its receivables over the past five years. It is important for the company to continue monitoring this ratio to ensure effective management of its accounts receivable and to promptly identify any potential issues in collecting outstanding balances.