RPM International Inc (RPM)
Receivables turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,372,650 | 7,298,830 | 7,345,250 | 7,292,210 | 7,335,280 | 7,343,330 | 7,336,530 | 7,335,960 | 7,256,420 | 7,224,100 | 7,141,800 | 6,989,630 | 6,707,730 | 6,468,150 | 6,303,670 | 6,150,050 | 6,106,300 | 5,820,950 | 5,725,530 | 5,640,900 |
| Receivables | US$ in thousands | 1,509,110 | 1,105,080 | 1,290,540 | 1,344,180 | 1,477,280 | 1,121,810 | 1,285,940 | 1,418,890 | 1,552,230 | 1,203,210 | 1,340,130 | 1,407,870 | 1,432,630 | 1,085,400 | 1,173,490 | 1,171,910 | 1,280,810 | 998,783 | 1,081,840 | 1,159,130 |
| Receivables turnover | 4.89 | 6.60 | 5.69 | 5.43 | 4.97 | 6.55 | 5.71 | 5.17 | 4.67 | 6.00 | 5.33 | 4.96 | 4.68 | 5.96 | 5.37 | 5.25 | 4.77 | 5.83 | 5.29 | 4.87 |
May 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,372,650K ÷ $1,509,110K
= 4.89
The receivables turnover ratio for RPM International Inc. exhibits notable fluctuations over the analyzed period, indicating variations in the efficiency with which the company collects its accounts receivable. Initially, the ratio was approximately 4.87 as of August 31, 2020, and showed a general upward trend, reaching a peak of 6.60 by February 28, 2025. This trend suggests that the company's collection efficiency improved over time, enabling it to convert receivables into cash more rapidly.
Between August 2020 and February 2021, the receivables turnover increased steadily, reaching 5.83, which indicates a reduction in the average collection period and potentially improved credit management. The ratio continued this upward trend with minor fluctuations, peaking at 5.96 in February 2022 and subsequently reaching an even higher level of 6.55 in February 2024, further reinforcing the pattern of enhanced receivable collection efficiency.
However, there are periods of slight decline; for instance, the ratio fell from 5.83 in February 2021 to 4.77 in May 2021, and again from 5.37 in November 2021 to 4.68 in May 2022. These dips may reflect temporary challenges in collection processes or changes in credit policy.
Overall, the ratio demonstrates a general upward trajectory over the period, with the latest figures indicating a receivables turnover of 6.60 as of February 2025. This indicates that RPM International Inc. has been able to collect its receivables approximately 6.6 times per year, corresponding to an average collection period of roughly 55 days. The sustained improvement suggests effective credit and collection management, although periodic fluctuations highlight the importance of continuous monitoring to maintain or further enhance collection efficiency.
Peer comparison
May 31, 2025