Griffon Corporation (GFF)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,621,550 | 2,596,560 | 2,760,350 | 2,207,580 | 2,333,180 |
| Receivables | US$ in thousands | 312,765 | 312,432 | 361,653 | 294,804 | 348,124 |
| Receivables turnover | 8.38 | 8.31 | 7.63 | 7.49 | 6.70 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,621,550K ÷ $312,765K
= 8.38
The receivables turnover ratio for Griffon Corporation has shown a consistent improvement over the past five years, increasing from 6.70 in 2020 to 8.38 in 2024. This indicates that the company is collecting its accounts receivable more frequently each year, which is a positive trend.
A higher receivables turnover ratio suggests that Griffon Corporation is managing its accounts receivable efficiently and effectively converting credit sales into cash in a timely manner. This may reflect strong credit control policies, a focus on prompt collection efforts, and good customer creditworthiness assessments.
Overall, the increasing trend in receivables turnover for Griffon Corporation is a positive signal of its financial health and operational effectiveness in managing its accounts receivable. It indicates that the company is adept at maintaining a balance between extending credit to customers and promptly collecting payments, thereby improving its liquidity position.