RBC Bearings Incorporated (RBC)

The receivables turnover ratio measures how effectively a company is able to collect outstanding receivables from its customers during a specific period. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers.

Looking at the receivables turnover ratio of RBC Bearings Incorporated over the past five years, we observe some fluctuations in the ratio. In the most recent fiscal year ending on March 31, 2024, the company's receivables turnover ratio was 6.11, indicating that RBC Bearings collected its outstanding receivables approximately 6.11 times during the year. This was slightly lower compared to the previous year but still reflective of efficient collection practices.

In the fiscal year ending March 31, 2023, RBC Bearings had a receivables turnover ratio of 6.13, which was relatively consistent with the current year, suggesting continued efficiency in collecting receivables from customers.

However, in the fiscal year ending March 31, 2022, the company's receivables turnover ratio dropped to 3.81, signaling a potential delay in collecting receivables compared to the previous and subsequent years. This could indicate issues with credit policies, customer payment behavior, or other operational challenges.

In the fiscal years 2021 and 2020, RBC Bearings displayed healthier receivables turnover ratios of 5.51 and 5.64, respectively, indicating efficient collection efforts during those periods.

Overall, RBC Bearings' receivables turnover ratios have shown some variability over the past five years, with the most recent year reflecting a slightly lower turnover ratio. It would be important for the company to assess the reasons behind any fluctuations to ensure optimal cash flow management and efficient collection practices in the future.

Peer comparison

Mar 31, 2024