Rockwell Automation Inc (ROK)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,203,900 | 7,500,200 | 6,930,300 | 6,216,700 | 6,630,500 |
| Receivables | US$ in thousands | 2,167,400 | 1,736,700 | 1,424,500 | 1,249,100 | 1,178,700 |
| Receivables turnover | 4.25 | 4.32 | 4.87 | 4.98 | 5.63 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,203,900K ÷ $2,167,400K
= 4.25
The receivables turnover ratio measures how efficiently a company is managing its receivables or accounts receivable. It is calculated by dividing the net credit sales by the average accounts receivable for a specific period. A higher ratio indicates that the company is collecting its outstanding receivables more quickly.
Analyzing the receivables turnover for Rockwell Automation Inc over the five-year period from 2019 to 2023 reveals a decreasing trend. In 2019, the receivables turnover ratio was at its highest at 5.68, indicating that the company was collecting its receivables more frequently during that period. However, since then, the ratio has declined, reaching its lowest point in 2023 at 4.18.
A decreasing trend in the receivables turnover ratio could suggest that Rockwell Automation Inc is taking longer to collect its outstanding receivables compared to previous years. This may be due to changes in the company's credit policies, an increase in overdue accounts, or a shift in the customer base towards slower-paying customers.
It is essential to further investigate the reasons behind the declining trend in the receivables turnover ratio for Rockwell Automation Inc. A thorough analysis of the company's credit and collection policies, changes in customer payment behavior, and industry trends would provide valuable insights into the underlying factors impacting the efficiency of receivables management.
In conclusion, the decreasing trend in Rockwell Automation Inc's receivables turnover ratio over the five-year period highlights the importance of closely monitoring the company's receivables management practices to ensure timely collection of outstanding accounts receivable.
Peer comparison
Sep 30, 2023