Insteel Industries Inc (IIIN)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 649,188 | 826,832 | 590,601 | 472,618 | 455,713 |
| Receivables | US$ in thousands | 63,424 | 81,646 | 67,917 | 53,817 | 45,397 |
| Receivables turnover | 10.24 | 10.13 | 8.70 | 8.78 | 10.04 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $649,188K ÷ $63,424K
= 10.24
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. Insteel Industries, Inc.'s receivables turnover has shown consistency over the past five years, ranging from 8.70 to 10.24. This indicates that the company is able to efficiently collect its receivables, with an average of around 9.96 times per year over the period. A higher receivables turnover ratio generally implies a shorter time between making a sale and receiving the cash, reflecting strong liquidity and efficient credit management. Insteel Industries, Inc.'s stable and relatively high receivables turnover ratio suggests effective credit and collection policies in place, which is a positive indicator of its financial performance and management of accounts receivable.
Peer comparison
Sep 30, 2023