Rollins Inc (ROL)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,069,673 | 2,969,441 | 2,863,419 | 2,760,623 | 2,693,185 | 2,599,388 | 2,520,954 | 2,445,989 | 2,391,431 | 2,360,474 | 2,293,748 | 2,208,873 | 2,161,220 | 2,130,913 | 2,103,681 | 2,074,309 | 2,015,477 | 1,954,115 | 1,885,388 | 1,841,892 |
| Receivables | US$ in thousands | 215,239 | 236,644 | 214,062 | 189,025 | 189,377 | 202,527 | 192,577 | 164,252 | 165,731 | 180,160 | 18,204 | 19,101 | 20,085 | 19,109 | 19,466 | 14,914 | 145,033 | 155,886 | 152,294 | 123,851 |
| Receivables turnover | 14.26 | 12.55 | 13.38 | 14.60 | 14.22 | 12.83 | 13.09 | 14.89 | 14.43 | 13.10 | 126.00 | 115.64 | 107.60 | 111.51 | 108.07 | 139.08 | 13.90 | 12.54 | 12.38 | 14.87 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,069,673K ÷ $215,239K
= 14.26
The receivables turnover ratio measures how effectively a company is managing its accounts receivable by indicating how many times during a period the company collects its average accounts receivable balance. A higher ratio generally implies that the company is collecting its receivables more efficiently.
In the case of Rollins, Inc., we observe fluctuations in the receivables turnover ratio over the past eight quarters. The ratio has ranged from a low of 12.60 in Q3 2023 to a high of 15.10 in Q1 2022. This variability suggests potential changes in the company's collection practices or the creditworthiness of its customers.
Although the ratio in Q3 2023 dipped to 12.60, it rebounded in Q4 2023 to 14.28, indicating a potential improvement in the company's collections efficiency during that period. Overall, the average receivables turnover for Rollins, Inc. during these quarters was approximately 13.78.
Further analysis of Rollins, Inc.'s receivables turnover ratio in comparison to industry benchmarks or historical data would provide a more comprehensive understanding of the company's performance in managing its accounts receivable. Additionally, examining any trends or patterns over a longer period could help identify any underlying factors influencing the fluctuations in the receivables turnover ratio.
Peer comparison
Dec 31, 2023