Rollins Inc (ROL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,069,670 | 2,693,180 | 2,423,470 | 2,161,220 | 2,015,480 |
| Receivables | US$ in thousands | 215,239 | 189,377 | 165,731 | 20,085 | 145,033 |
| Receivables turnover | 14.26 | 14.22 | 14.62 | 107.60 | 13.90 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,069,670K ÷ $215,239K
= 14.26
The receivables turnover ratio for Rollins, Inc. has been relatively stable over the past five years, ranging from 13.90 to 14.63. This indicates that, on average, Rollins, Inc. is able to efficiently collect its accounts receivables approximately 14 times per year. A higher receivables turnover ratio is generally favorable as it implies that the company is collecting its outstanding credit sales more quickly.
The consistency in the receivables turnover ratio suggests that Rollins, Inc. has been effective in managing its accounts receivables and converting credit sales into cash. This could be attributed to the company's strong credit policies and effective collection efforts.
However, it is important to note that while a high receivables turnover ratio is generally positive, an excessively high ratio could indicate overly strict credit policies that may be hindering sales growth. Therefore, it's crucial for Rollins, Inc. to strike a balance between efficient collections and maintaining good customer relationships.
Peer comparison
Dec 31, 2023