Stericycle Inc (SRCL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,591,300 | 2,718,000 | 2,646,700 | 2,548,200 | 3,176,400 |
| Receivables | US$ in thousands | 553,900 | 414,500 | 420,400 | 380,700 | 544,300 |
| Receivables turnover | 4.68 | 6.56 | 6.30 | 6.69 | 5.84 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,591,300K ÷ $553,900K
= 4.68
Receivables turnover, a key financial ratio indicating how efficiently a company collects on its credit sales, has fluctuated for Stericycle Inc. over the past five years. The trend shows a decrease from 7.03 in 2020 to 4.80 in 2023. This decreasing trend suggests that the company took longer to collect its accounts receivable in 2023 compared to previous years.
A lower receivables turnover ratio could indicate potential issues with credit policies, collection efforts, or an increase in credit sales to less creditworthy customers. It may also reflect a decrease in sales or an increase in accounts receivable balance without a corresponding increase in sales.
It is important for Stericycle Inc. to monitor and analyze the reasons behind this declining trend in receivables turnover to identify any underlying issues and take appropriate actions to improve its collections efficiency and overall financial performance.
Peer comparison
Dec 31, 2023