Jacobs Solutions Inc. (J)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,377,400 | 15,085,600 | 14,240,900 | 13,518,700 | 12,737,900 |
| Receivables | US$ in thousands | 3,558,810 | 3,405,380 | 3,101,420 | 3,167,310 | 2,840,210 |
| Receivables turnover | 4.60 | 4.43 | 4.59 | 4.27 | 4.48 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $16,377,400K ÷ $3,558,810K
= 4.60
The receivables turnover ratio for Jacobs Solutions Inc. has exhibited a relatively stable trend over the past five years, ranging between 4.27 and 4.60. This indicates the company's ability to efficiently collect cash from its credit customers within a given accounting period. The higher the receivables turnover ratio, the better, as it signifies that the company is managing its accounts receivable effectively.
The slight fluctuations in the receivables turnover ratio suggest that Jacobs Solutions Inc. has been consistent in managing its credit sales and collections processes. A ratio above 4 indicates that the company typically collects its accounts receivable roughly four times a year, which is considered a positive sign of liquidity and efficient operating cycle management.
Overall, the stable and relatively high receivables turnover ratios over the years indicate that Jacobs Solutions Inc. has been successful in converting its credit sales into cash efficiently, which is a favorable indicator of the company's financial health and operational efficiency.
Peer comparison
Sep 30, 2023