Graco Inc (GGG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 | 1,646,040 |
| Receivables | US$ in thousands | 354,439 | 346,010 | 325,132 | 314,946 | 267,345 |
| Receivables turnover | 6.19 | 6.19 | 6.11 | 5.24 | 6.16 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,195,610K ÷ $354,439K
= 6.19
The receivables turnover of Graco Inc has been relatively stable over the past five years, ranging from 5.24 to 6.19 times. This ratio indicates how efficiently the company is able to collect cash from its customers. A higher turnover ratio suggests that the company is collecting its accounts receivable more quickly, which is generally a positive sign of effective credit management and timely collections.
Graco Inc's receivables turnover of 6.19 in 2023 and 2022 indicates that the company collected its accounts receivable approximately 6.19 times during those years. This consistency suggests that Graco Inc has maintained strong control over its accounts receivable collection process.
Overall, the trend of the receivables turnover ratio for Graco Inc demonstrates a consistent performance in managing its receivables, which is crucial for maintaining cash flow and liquidity in the business.
Peer comparison
Dec 31, 2023