Kadant Inc (KAI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,050,980 | 950,662 | 896,492 | 782,025 | 627,794 |
| Receivables | US$ in thousands | 142,462 | 133,929 | 130,297 | 117,209 | 91,540 |
| Receivables turnover | 7.38 | 7.10 | 6.88 | 6.67 | 6.86 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,050,980K ÷ $142,462K
= 7.38
The receivables turnover ratio of Kadant Inc has shown a fairly consistent trend over the past five years. Starting at 6.86 in December 2020, it slightly decreased to 6.67 by December 2021. However, the ratio picked up in the following years, reaching 6.88 in December 2022, 7.10 in December 2023, and 7.38 by the end of December 2024.
This indicates that Kadant Inc is efficiently managing its accounts receivable, with an increasing turnover rate over the years. A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more quickly, which is a positive sign of strong liquidity and effective credit management. Overall, the consistent improvement in receivables turnover reflects positively on Kadant Inc's ability to efficiently convert its credit sales into cash.
Peer comparison
Dec 31, 2024