Stanley Black & Decker Inc (SWK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,781,100 | 16,947,400 | 15,281,300 | 12,750,000 | 12,912,900 |
| Receivables | US$ in thousands | 1,555,900 | 1,326,500 | 1,585,800 | 1,663,700 | 1,580,900 |
| Receivables turnover | 10.14 | 12.78 | 9.64 | 7.66 | 8.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,781,100K ÷ $1,555,900K
= 10.14
The receivables turnover ratio measures the efficiency with which a company is able to collect on its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
Stanley Black & Decker Inc's receivables turnover has fluctuated over the past five years. In 2023, the receivables turnover ratio was 10.14, lower than the previous year, indicating that the company took longer to collect its outstanding receivables compared to 2022.
However, the receivables turnover ratio in 2023 still remains relatively high, suggesting that the company effectively manages its accounts receivable and collects payments promptly. This could be a positive sign of strong customer credit policies and efficient collection procedures.
Looking at the trend over five years, the company's receivables turnover has generally shown improvement from 2019 to 2022, with a peak in 2022 at 12.78. The decrease in 2023 could be a temporary fluctuation or may require further investigation to understand the factors influencing the collection efficiency.
Overall, while the receivables turnover ratio for Stanley Black & Decker Inc decreased in 2023, it is important to consider the company's historical performance and industry benchmarks to gain a comprehensive understanding of its receivables management effectiveness.
Peer comparison
Dec 31, 2023