NV5 Global Inc (NVEE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,276,230 | 1,126,510 | 1,010,090 | 941,231 | 506,663 |
| Receivables | US$ in thousands | 152,593 | 145,637 | 153,814 | 142,705 | 131,041 |
| Receivables turnover | 8.36 | 7.74 | 6.57 | 6.60 | 3.87 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,276,230K ÷ $152,593K
= 8.36
The receivables turnover ratio for NV5 Global Inc has been consistently improving over the past five years, indicating the company's ability to efficiently collect outstanding receivables from its customers. The ratio increased from 3.87 in 2019 to 8.36 in 2023, reflecting a significant enhancement in the company's receivables management.
A higher receivables turnover ratio is generally preferred as it signifies that the company is able to convert its accounts receivable into cash more quickly. This improvement suggests that NV5 Global Inc has been effective in its credit and collection policies, leading to a more streamlined and efficient receivables process.
The trend of increasing receivables turnover ratio over the years demonstrates NV5 Global Inc's enhanced liquidity and potentially reduced credit risk exposure. This positive trajectory in receivables turnover is indicative of the company's strong financial health and operational efficiency in managing its receivables.
Peer comparison
Dec 31, 2023