Mueller Water Products (MWA)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,314,700 | 1,275,700 | 1,247,400 | 1,111,000 | 964,100 |
| Receivables | US$ in thousands | 215,500 | 221,800 | 232,700 | 223,900 | 180,800 |
| Receivables turnover | 6.10 | 5.75 | 5.36 | 4.96 | 5.33 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,314,700K ÷ $215,500K
= 6.10
The receivables turnover ratios of Mueller Water Products over the five fiscal years ending September 30th are as follows: 5.33 in 2020, 4.96 in 2021, 5.36 in 2022, 5.75 in 2023, and 6.10 in 2024.
Initial observations indicate a slight decline from 2020 to 2021, suggesting a marginal decrease in the company's efficiency in collecting receivables during that period. However, from 2021 onward, the receivables turnover ratio demonstrates a consistent upward trend, culminating in a ratio of 6.10 in 2024. This indicates an improvement in the company's receivables collection efficiency over the latter years.
The overall increase from 4.96 in 2021 to 6.10 in 2024 signifies that Mueller Water Products has become more effective at converting its receivables into cash. A higher receivables turnover ratio reflects shorter collection periods and potentially improved cash flow management. This trend suggests that the company may have implemented more effective credit policies or improved its collection processes, contributing to increased operational efficiency.
In summary, the receivables turnover for Mueller Water Products shows a positive trajectory in recent years, moving toward greater efficiency in receivables management, which could support stronger liquidity positioning and operational performance.
Peer comparison
Sep 30, 2024