Graham Holdings Co (GHC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,394,680 | 3,881,520 | 3,193,800 | 3,072,330 | 2,932,100 |
| Receivables | US$ in thousands | 503,020 | 542,935 | 622,326 | 548,890 | 606,056 |
| Receivables turnover | 8.74 | 7.15 | 5.13 | 5.60 | 4.84 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,394,680K ÷ $503,020K
= 8.74
The receivables turnover ratio for Graham Holdings Co. has shown a generally positive trend over the past five years, indicating improved efficiency in collecting receivables.
In 2019, the ratio was 4.62, which means that on average, the company collected its outstanding receivables approximately 4.62 times during the year. Subsequently, the ratio increased to 5.10 in 2020, further to 4.98 in 2021, and then to 6.88 in 2022. This steady increase indicates that the company has been able to collect its receivables more frequently within each year.
The most significant improvement in receivables turnover occurred in 2023, with a ratio of 8.30. This suggests that the company was able to collect its outstanding receivables 8.30 times during the year, indicating a substantial enhancement in efficiency compared to the previous years.
Overall, the increasing trend in the receivables turnover ratio reflects positively on Graham Holdings Co.'s ability to manage its accounts receivable effectively and convert them into cash, which ultimately contributes to the company's liquidity and financial health.
Peer comparison
Dec 31, 2023