Lancaster Colony Corporation (LANC)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,871,720 | 1,822,640 | 1,676,360 | 1,466,850 | 1,334,000 |
| Receivables | US$ in thousands | 95,560 | 114,967 | 135,496 | 97,897 | 86,604 |
| Receivables turnover | 19.59 | 15.85 | 12.37 | 14.98 | 15.40 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,871,720K ÷ $95,560K
= 19.59
Lancaster Colony Corporation's receivables turnover ratio has shown an upward trend over the past five years, indicating an improvement in the company's ability to collect outstanding receivables. The ratio has increased from 15.40 in 2020 to 19.59 in 2024.
A higher receivables turnover ratio generally signifies that the company is collecting its accounts receivable more frequently within a given period. This could suggest efficient credit policies, effective collection processes, or a strong customer base that pays promptly.
The gradual increase in receivables turnover over the years could imply that Lancaster Colony Corporation has been managing its accounts receivable effectively, reducing the risk of bad debts and improving its cash flow position. This improving trend is a positive indicator of the company's financial health and operational efficiency in managing its receivables.
Peer comparison
Jun 30, 2024