Hillenbrand Inc (HI)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,943,600 | 2,826,000 | 2,667,100 | 2,530,300 | 2,405,100 | 2,315,300 | 1,842,900 | 1,958,200 | 2,114,800 | 2,241,400 | 2,803,600 | 2,716,000 | 2,642,600 | 2,517,000 | 2,309,100 | 2,148,200 | 1,963,900 | 1,807,300 | 1,796,200 | 1,795,600 |
| Receivables | US$ in thousands | 639,700 | 658,900 | 598,700 | 634,000 | 596,900 | 525,600 | 501,800 | 479,500 | 446,400 | 445,400 | 417,800 | 442,600 | 465,900 | 417,600 | 463,400 | 480,100 | 550,200 | 398,500 | 357,400 | 364,300 |
| Receivables turnover | 4.60 | 4.29 | 4.45 | 3.99 | 4.03 | 4.41 | 3.67 | 4.08 | 4.74 | 5.03 | 6.71 | 6.14 | 5.67 | 6.03 | 4.98 | 4.47 | 3.57 | 4.54 | 5.03 | 4.93 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,943,600K ÷ $639,700K
= 4.60
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers over a specific period of time. A higher receivables turnover ratio indicates a quicker collection of receivables, which is generally considered favorable as it implies efficient management of accounts receivable.
Analyzing the trend of Hillenbrand Inc's receivables turnover ratio over the past eight quarters shows fluctuations in the efficiency of collecting payments from customers. The receivables turnover ratio decreased from 6.09 in Q2 2022 to 4.29 in Q4 2023, indicating a decline in the efficiency of collecting payments during this period. However, the ratio improved to 4.60 in Q1 2024 from the previous quarter, which could suggest an improvement in receivables management.
Overall, the declining trend in the receivables turnover ratio up to Q4 2023 may raise concerns about the company's ability to efficiently collect payments from customers. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the overall financial health and management of accounts receivable by Hillenbrand Inc.
Peer comparison
Dec 31, 2023