Hawkins Inc (HWKN)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 919,162 | 935,098 | 774,541 | 596,871 | 540,198 |
| Receivables | US$ in thousands | 114,477 | 129,252 | 122,826 | 90,778 | 67,391 |
| Receivables turnover | 8.03 | 7.23 | 6.31 | 6.58 | 8.02 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $919,162K ÷ $114,477K
= 8.03
The receivables turnover ratio for Hawkins Inc has exhibited a fluctuating trend over the past five years, ranging from 6.31 to 8.03. A higher receivables turnover ratio indicates that the company collects its outstanding receivables more quickly, which can be a positive indicator of efficiency in managing its accounts receivable.
In this case, the receivables turnover ratio has generally increased from 6.31 in 2022 to 8.03 in 2024, suggesting an improvement in the company's ability to collect payments from customers over a shorter period. This could be a favorable sign of effective credit management or tightening credit policies, resulting in quicker conversion of credit sales into cash.
However, it's important to note that a very high receivables turnover ratio could also raise concerns about the company's credit policies being too restrictive, potentially hindering sales growth. Therefore, while the increasing trend in the receivables turnover ratio for Hawkins Inc demonstrates efficiency in collecting receivables, it should be assessed in conjunction with other financial metrics to provide a comprehensive analysis of the company's overall financial performance.
Peer comparison
Mar 31, 2024