Hillenbrand Inc (HI)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,826,000 | 2,315,300 | 2,241,400 | 2,517,000 | 1,807,300 |
| Receivables | US$ in thousands | 658,900 | 525,600 | 445,400 | 417,600 | 398,500 |
| Receivables turnover | 4.29 | 4.41 | 5.03 | 6.03 | 4.54 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,826,000K ÷ $658,900K
= 4.29
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. Hillenbrand Inc's receivables turnover has shown a decreasing trend over the past five years, from 6.43 in 2021 to 4.29 in 2023. A decreasing trend in receivables turnover could indicate that the company is taking longer to collect payments from its customers, which may potentially raise concerns about its accounts receivable management.
A lower receivables turnover could also suggest a worsening credit policy or deterioration in the quality of the company's receivables. It is important for the company to investigate the reasons behind this decrease and take necessary steps to improve its collections process. Management should closely monitor this ratio and work towards maintaining an efficient collection process to ensure healthy cash flows and liquidity.
Peer comparison
Sep 30, 2023