Insteel Industries Inc (IIIN)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 529,198 | 649,188 | 826,832 | 590,601 | 472,618 |
| Receivables | US$ in thousands | 59,665 | 63,424 | 81,646 | 67,917 | 53,817 |
| Receivables turnover | 8.87 | 10.24 | 10.13 | 8.70 | 8.78 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $529,198K ÷ $59,665K
= 8.87
The receivables turnover of Insteel Industries Inc has shown variability over the past five years. In 2024, the receivables turnover ratio was 8.87, a decrease from the previous year's ratio of 10.24. This suggests that the company took longer to collect its accounts receivable in 2024 compared to 2023. However, the ratio of 8.87 is still relatively high, indicating that Insteel Industries Inc is efficient in converting its accounts receivable into cash within a shorter period.
Looking at the trend over the five-year period, the receivables turnover ratio has generally remained above 8, indicating that the company has been effective in managing its accounts receivable and collecting payments from customers in a timely manner. The slight fluctuations in the ratio from year to year may be attributed to changes in the company's credit policies, customer payment behavior, or overall industry conditions.
Overall, a high and relatively stable receivables turnover ratio suggests that Insteel Industries Inc has a strong ability to efficiently collect payments from customers, which is a positive indicator of its liquidity and operational efficiency.
Peer comparison
Sep 30, 2024