Science Applications International Corporation Common Stock (SAIC)
Receivables turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,569,000 | 7,585,000 | 7,310,000 | 6,966,000 | 6,292,000 |
| Receivables | US$ in thousands | 914,000 | 936,000 | 1,015,000 | 962,000 | 1,099,000 |
| Receivables turnover | 8.28 | 8.10 | 7.20 | 7.24 | 5.73 |
February 2, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,569,000K ÷ $914,000K
= 8.28
The receivables turnover ratio of Science Applications International Corporation Common Stock has shown a generally increasing trend over the past five years. In the most recent fiscal year ended February 2, 2024, the ratio reached 8.28, representing a significant improvement from the previous year's ratio of 8.10.
The upward trend indicates that the company has been able to collect its accounts receivable more efficiently, on average, each year. This may suggest effective credit management practices or improved cash collection processes within the organization.
Comparing the 2024 ratio to earlier years, we see a progression from 7.20 in January 28, 2022, to 7.24 in January 29, 2021, and 5.73 in January 31, 2020. This demonstrates a consistent effort by the company to enhance its receivables turnover efficiency over time.
A high receivables turnover ratio like the one exhibited by Science Applications International Corporation Common Stock indicates that the company is converting its accounts receivable into cash quickly. This can be viewed positively by investors and creditors as it signifies effective management of credit policies and potential liquidity in the business.
Peer comparison
Feb 2, 2024