Hillenbrand Inc (HI)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,182,800 | 2,826,000 | 2,315,300 | 2,241,400 | 2,517,000 |
| Receivables | US$ in thousands | 652,800 | 658,900 | 525,600 | 445,400 | 417,600 |
| Receivables turnover | 4.88 | 4.29 | 4.41 | 5.03 | 6.03 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,182,800K ÷ $652,800K
= 4.88
The receivables turnover ratio for Hillenbrand Inc has fluctuated over the past five years. In 2024, the receivables turnover ratio was 4.88, indicating that the company collected its accounts receivable approximately 4.88 times during the year. This was an improvement compared to the prior year when the ratio was 4.29.
Despite the increase in 2024, the current ratio is lower than the 2021 and 2020 figures, which were 5.03 and 6.03, respectively. A higher receivables turnover ratio is generally preferred as it suggests that the company is efficient in collecting payments from its customers.
Overall, Hillenbrand Inc should continue monitoring and managing its accounts receivable to ensure timely collection and maintain a healthy cash flow position.
Peer comparison
Sep 30, 2024