H&R Block Inc (HRB)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,761,000 | 3,610,350 | 3,472,180 | 3,463,270 | 3,413,990 |
| Receivables | US$ in thousands | 63,621 | 69,075 | 95,897 | 261,285 | 531,242 |
| Receivables turnover | 59.12 | 52.27 | 36.21 | 13.25 | 6.43 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,761,000K ÷ $63,621K
= 59.12
The receivables turnover ratio for H&R Block Inc. demonstrates a significant upward trend over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 6.43 in 2021 to 13.25 in 2022, then more than doubled to 36.21 in 2023. This upward trajectory continued into 2024 and 2025, reaching 52.27 and 59.12, respectively.
The substantial increase in receivables turnover indicates a marked improvement in the company's efficiency in collecting its accounts receivable. A higher receivables turnover ratio suggests that the company is collecting outstanding balances more rapidly, which can enhance cash flow and reduce the risk of bad debts. The sharp rise from 6.43 to 59.12 over this four-year period reflects a possible strategic shift toward more effective credit management or a change in the company's customer payment behaviors and policies.
Overall, the trend signifies a strong enhancement in receivables management efficiency, positioning H&R Block Inc. to operate with more liquidity and potentially lower financing costs associated with receivables. However, such rapid increases also warrant monitoring to ensure that credit policies remain balanced with customer relations and revenue growth objectives.
Peer comparison
Jun 30, 2025