Heidrick & Struggles International (HSII)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,115,680 | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 |
| Receivables | US$ in thousands | 134,331 | 133,128 | 161,725 | 170,692 | 107,775 |
| Receivables turnover | 8.31 | 7.82 | 6.70 | 5.91 | 5.84 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,115,680K ÷ $134,331K
= 8.31
The receivables turnover ratio of Heidrick & Struggles International has shown a consistent improvement over the past five years. The ratio increased from 5.84 in December 31, 2020, to 8.31 in December 31, 2024. This indicates that the company is collecting its accounts receivables more frequently and efficiently each year.
A higher receivables turnover ratio suggests that Heidrick & Struggles International is managing its receivables effectively, possibly by implementing stricter credit policies or undertaking prompt collection actions. This improvement can be a positive sign of the company's liquidity and ability to convert its credit sales into cash.
Overall, the increasing trend in the receivables turnover ratio demonstrates the company's effectiveness in managing its accounts receivables, which is crucial for maintaining a healthy cash flow and working capital position.
Peer comparison
Dec 31, 2024