J & J Snack Foods Corp (JJSF)
Receivables turnover
Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 1,574,760 | 1,558,810 | 1,380,640 | 1,144,480 | 1,022,040 |
Receivables | US$ in thousands | 189,233 | 198,129 | 208,178 | 162,939 | 126,587 |
Receivables turnover | 8.32 | 7.87 | 6.63 | 7.02 | 8.07 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,574,760K ÷ $189,233K
= 8.32
J & J Snack Foods Corp's receivables turnover has fluctuated over the past five years. The company's receivables turnover ratio was 8.32 in 2024, indicating that the company collected its accounts receivable approximately 8.32 times during the year. This represents an improvement compared to the previous year's ratio of 7.87 in 2023, but lower than the peak in 2020 when the ratio was 8.07.
A higher receivables turnover ratio generally indicates that the company is efficient in collecting payments from its customers. It suggests that the company is managing its accounts receivable effectively and converting credit sales into cash quickly.
However, it's important to note that a very high receivables turnover ratio could also indicate a very strict credit policy that might be discouraging potential customers. On the other hand, a low receivables turnover ratio could suggest that the company is struggling to collect payments from customers, possibly due to lax credit policies, potential financial distress, or ineffective credit management practices.
Overall, the increase in receivables turnover ratio for J & J Snack Foods Corp in 2024 is a positive sign, indicating an improvement in the efficiency of the company's accounts receivable management compared to the previous year.