Kratos Defense & Security Solutions (KTOS)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,136,300 | 1,037,100 | 898,300 | 811,500 | 747,700 |
| Receivables | US$ in thousands | 323,800 | 329,200 | 328,500 | 284,700 | 272,300 |
| Receivables turnover | 3.51 | 3.15 | 2.73 | 2.85 | 2.75 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,136,300K ÷ $323,800K
= 3.51
The receivables turnover ratio for Kratos Defense & Security Solutions demonstrates a pattern of gradual improvement over the given period. As of December 31, 2020, the ratio stood at 2.75, indicating that the company collected its average receivables approximately 2.75 times during the year. This ratio increased modestly in 2021 to 2.85, reflecting a slight enhancement in the efficiency of receivables collection practices.
In 2022, the ratio edged downward marginally to 2.73, suggesting a slight slowdown in collection efficiency compared to the previous year. However, this decline was brief, as evidenced by a notable upward trend commencing in 2023, with the ratio reaching 3.15, indicating that the company was able to convert its receivables into cash more frequently within the year. The upward trajectory continued into 2024, with the ratio further increasing to 3.51, implying a sustained improvement in receivables management.
Overall, the trend suggests that Kratos Defense & Security Solutions has been progressively strengthening its receivables collection processes over the analyzed period. The increase in the receivables turnover ratio signifies enhanced operational efficiency concerning receivables, leading to quicker cash inflows and potentially improved liquidity. The consistent rise from 2022 onward indicates a positive shift in receivables management, which can contribute to the company’s financial stability and capacity to meet short-term obligations more effectively.
Peer comparison
Dec 31, 2024