Signet Jewelers Ltd (SIG)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,202,700 | 7,830,100 | 7,807,100 | 5,166,000 | 6,113,300 |
| Receivables | US$ in thousands | 18,800 | 24,100 | 43,100 | 140,400 | 38,800 |
| Receivables turnover | 383.12 | 324.90 | 181.14 | 36.79 | 157.56 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,202,700K ÷ $18,800K
= 383.12
The receivables turnover ratio of Signet Jewelers Ltd has shown a strong increasing trend over the past five years, indicating an improvement in the efficiency of the company in collecting its accounts receivable.
In February 3, 2024, the company's receivables turnover ratio stood at 383.12, which means that on average, the company collected its accounts receivable approximately 383 times during the fiscal year. This significant increase from the previous year's ratio of 324.90 shows that Signet Jewelers Ltd has been able to more efficiently convert its credit sales into cash.
Looking back at the trend, we see a notable leap in the receivables turnover ratio from 2021 to 2022, where it surged from 36.79 to 181.14. This substantial improvement indicates that the company has made significant efforts to streamline its credit policies and collections procedures, resulting in a much faster turnover of its receivables.
The consistent growth in the receivables turnover ratio over the past five years reflects positively on Signet Jewelers Ltd's credit management practices and indicates a healthier cash flow position. This trend suggests that the company is becoming more effective in managing its accounts receivable, which could potentially lead to improved liquidity and financial performance in the future.