LCI Industries (LCII)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,784,810 | 5,207,140 | 4,472,700 | 2,796,170 | 2,371,480 |
| Receivables | US$ in thousands | 214,707 | 214,262 | 319,782 | 268,625 | 199,976 |
| Receivables turnover | 17.63 | 24.30 | 13.99 | 10.41 | 11.86 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,784,810K ÷ $214,707K
= 17.63
The receivables turnover ratio for LCI Industries has shown variability over the past five years. In 2023, the receivables turnover ratio stood at 17.63, indicating an improvement compared to the previous year where it was 24.30. This suggests that the company collected its accounts receivable approximately 17.63 times during the year.
The fluctuation in the receivables turnover ratio may indicate changes in the company's credit policies, efficiency in collecting outstanding receivables, or the nature of its customer base. A higher receivables turnover ratio generally implies that the company is more effective in collecting payments from customers promptly, which can help improve cash flow and reduce the risk of bad debts. Conversely, a lower ratio may point to potential issues in collecting outstanding receivables.
It is crucial for LCI Industries to monitor its receivables turnover ratio consistently to ensure that the company maintains an appropriate balance between sales and accounts receivable collection. By effectively managing its receivables turnover, the company can enhance its liquidity position and overall financial health.
Peer comparison
Dec 31, 2023