Gibraltar Industries Inc (ROCK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,377,740 | 1,389,970 | 1,339,780 | 1,032,580 | 898,233 |
| Receivables | US$ in thousands | 224,550 | 217,156 | 236,444 | 197,990 | 147,515 |
| Receivables turnover | 6.14 | 6.40 | 5.67 | 5.22 | 6.09 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,377,740K ÷ $224,550K
= 6.14
The receivables turnover ratio for Gibraltar Industries Inc. has fluctuated over the past five years. The trend indicates that the company's ability to collect its accounts receivable has slightly decreased from 2019 to 2023, with a peak at 7.10 in 2019 and a decrease to 6.14 in 2023.
A high receivables turnover ratio suggests that the company efficiently collects payments from its customers, which is a positive indicator of strong liquidity and effective credit policies. Although there has been a slight decline in the receivables turnover ratio, the company's ability to convert its accounts receivable into cash remains relatively healthy.
It is important for Gibraltar Industries Inc. to monitor this ratio closely to ensure timely collection of outstanding receivables and maintain a healthy cash flow position. Further analysis of the underlying factors impacting this ratio, such as changes in credit terms or customer payment behavior, would provide additional insights into the company's financial performance and management of receivables.
Peer comparison
Dec 31, 2023