Somnigroup International Inc. (SGI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 | 3,106,000 |
| Receivables | US$ in thousands | 456,200 | 422,600 | 419,500 | 383,700 | 372,000 |
| Receivables turnover | 10.80 | 11.65 | 11.75 | 9.58 | 8.35 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,925,400K ÷ $456,200K
= 10.80
Somnigroup International Inc.'s receivables turnover has shown a positive trend over the past five years, increasing steadily from 8.35 in 2019 to 10.80 in 2023. This indicates that the company is improving its efficiency in collecting payments from customers.
A higher receivables turnover ratio signifies that the company is more effective in converting its accounts receivable into cash. The upward trend in this ratio suggests that Somnigroup International Inc. has been successful in managing its credit policies or improving its collection processes.
An increasing receivables turnover ratio can also indicate that the company is extending credit to more creditworthy customers or that customers are paying their bills more promptly. This could potentially lead to enhanced liquidity for the company and reduced risk of bad debts.
Overall, the improving trend in Somnigroup International Inc.'s receivables turnover ratio is a positive indicator of the company's efficiency in managing its accounts receivable and maintaining healthy cash flows.
Peer comparison
Dec 31, 2023