Sterling Construction Company Inc (STRL)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,115,760 | 1,972,230 | 1,769,440 | 1,414,370 | 1,226,740 |
| Receivables | US$ in thousands | 340,302 | 358,541 | 386,571 | 285,820 | 279,052 |
| Receivables turnover | 6.22 | 5.50 | 4.58 | 4.95 | 4.40 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,115,760K ÷ $340,302K
= 6.22
The receivables turnover ratios for Sterling Construction Company Inc. over the specified periods demonstrate an overall improving trend in the company's efficiency in collecting receivables.
At the close of December 31, 2020, the receivables turnover was 4.40, indicating that the company collected its average accounts receivable approximately 4.4 times during that year. This ratio increased to 4.95 by December 31, 2021, suggesting a modest improvement in collection efficiency.
In 2022, the ratio slightly declined to 4.58, which might reflect some challenges or slower collections during that period. However, from 2022 onward, the company showed a consistent upward trend, with the ratio reaching 5.50 at the end of 2023 and further improving to 6.22 by the end of 2024.
This increasing pattern indicates that Sterling Construction has been progressively enhancing its receivables management and collection processes, resulting in a more rapid turnover of accounts receivable. A higher receivables turnover generally implies better liquidity and less risk of bad debts, assuming credit policies remain consistent.
Overall, the period from 2020 to 2024 illustrates a positive trajectory in receivables management for Sterling Construction Company Inc., with the significant step-up in 2023 and 2024 underpinning improved operational efficiency in collecting receivables.
Peer comparison
Dec 31, 2024