Reliance Steel & Aluminum Co (RS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,805,900 | 17,025,000 | 14,093,300 | 8,811,900 | 10,973,800 |
| Receivables | US$ in thousands | 1,508,000 | 1,602,300 | 1,683,000 | 928,400 | 1,105,000 |
| Receivables turnover | 9.82 | 10.63 | 8.37 | 9.49 | 9.93 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,805,900K ÷ $1,508,000K
= 9.82
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a given period. A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly.
Looking at the data provided for Reliance Steel & Aluminum Co., we observe fluctuations in the receivables turnover ratio over the past five years:
- In 2023, the receivables turnover ratio was 9.82, slightly lower than the previous year.
- In 2022, the ratio increased to 10.63, suggesting the company was collecting its receivables at a faster rate.
- In 2021, the ratio decreased to 8.37, indicating a slower collection of receivables compared to the previous year.
- In 2020, the ratio was 9.49, showing a slight improvement from the previous year.
- In 2019, the ratio was 9.93, indicating a relatively stable collection of receivables compared to 2020.
Overall, the company's receivables turnover ratio has shown some variability over the years, with fluctuations in the efficiency of collecting accounts receivable. It is important for the company to closely monitor this ratio to ensure timely collection of outstanding payments and maintain healthy cash flows.
Peer comparison
Dec 31, 2023