Simpson Manufacturing Company Inc (SSD)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,230,640 | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 |
| Receivables | US$ in thousands | 284,392 | 283,975 | 269,124 | 231,021 | 165,128 |
| Receivables turnover | 7.84 | 7.77 | 7.83 | 6.77 | 7.66 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,230,640K ÷ $284,392K
= 7.84
Based on the data provided, Simpson Manufacturing Company Inc's receivables turnover has shown some fluctuation over the past five years. The receivables turnover ratio measures how efficiently the company is able to collect payments from its customers.
In 2020, the receivables turnover ratio was 7.66 times, indicating that on average, the company collected its accounts receivable approximately 7.66 times during that year. This ratio decreased slightly to 6.77 times in 2021, suggesting that the company took longer to collect payments from its customers compared to the previous year.
However, there was an improvement in 2022, with the receivables turnover increasing to 7.83 times. This may indicate that the company implemented more effective credit policies or experienced better collections efficiency during that period. The trend continued in 2023, with a receivables turnover of 7.77 times, suggesting sustained efficiency in collecting payments.
In 2024, the receivables turnover ratio further increased to 7.84 times, indicating a slight improvement in the company's ability to collect payments promptly from customers.
Overall, the receivables turnover ratio for Simpson Manufacturing Company Inc has shown a general trend of efficiency in collecting accounts receivable over the past five years, with some fluctuations from year to year. It is important for the company to monitor this ratio closely to ensure timely collection of receivables and maintain healthy cash flow.
Peer comparison
Dec 31, 2024