Tempur Sealy International Inc (TPX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 | 3,106,000 |
| Receivables | US$ in thousands | 456,200 | 422,600 | 419,500 | 383,700 | 372,000 |
| Receivables turnover | 10.80 | 11.65 | 11.75 | 9.58 | 8.35 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,925,400K ÷ $456,200K
= 10.80
The receivables turnover ratio for Tempur Sealy International Inc has been consistently increasing over the past five years, reflecting an improvement in the company's ability to efficiently collect payments from its customers. The ratio increased from 8.35 in 2019 to 11.42 in 2023.
A high receivables turnover ratio indicates that the company is effectively managing its accounts receivable by converting them into cash quickly. This is a positive sign as it implies that Tempur Sealy International Inc is successful in managing its credit policies and collections process efficiently.
Overall, the trend of increasing receivables turnover ratio over the years suggests that Tempur Sealy International Inc has been enhancing its credit and collection management processes, which could lead to improved cash flows and financial performance.
Peer comparison
Dec 31, 2023