Tempur Sealy International Inc (TPX)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,925,400 | 4,942,300 | 4,948,500 | 4,889,800 | 4,921,200 | 5,093,400 | 5,168,400 | 5,126,500 | 4,930,800 | 4,628,200 | 4,402,200 | 3,898,300 | 3,676,900 | 3,491,200 | 3,179,900 | 3,237,500 | 3,106,000 | 2,910,800 | 2,819,300 | 2,766,200 |
| Receivables | US$ in thousands | 456,200 | 525,800 | 476,100 | 461,500 | 422,600 | 488,200 | 481,600 | 426,400 | 419,500 | 510,200 | 462,500 | 397,400 | 383,700 | 440,800 | 341,800 | 372,800 | 372,000 | 431,200 | 386,300 | 356,400 |
| Receivables turnover | 10.80 | 9.40 | 10.39 | 10.60 | 11.65 | 10.43 | 10.73 | 12.02 | 11.75 | 9.07 | 9.52 | 9.81 | 9.58 | 7.92 | 9.30 | 8.68 | 8.35 | 6.75 | 7.30 | 7.76 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,925,400K ÷ $456,200K
= 10.80
The receivables turnover ratio for Tempur Sealy International Inc has fluctuated over the past eight quarters, ranging from a low of 9.40 in Q3 2023 to a high of 12.02 in Q1 2022. The ratio indicates the efficiency with which the company is able to collect on its credit sales during a specific period.
The average receivables turnover ratio over these eight quarters is approximately 10.81. This suggests that, on average, Tempur Sealy International Inc is able to collect its accounts receivable approximately 10.81 times a year, or roughly once every 33 days.
A higher turnover ratio generally indicates that the company is collecting its accounts receivable more frequently, which can be a positive sign of efficiency in managing credit sales. In contrast, a lower turnover ratio may suggest delays in collecting on credit sales or potential issues with credit policies and collections.
Overall, the fluctuation in Tempur Sealy International Inc's receivables turnover ratio over the past two years may warrant further investigation into the company's credit and collection practices to determine the underlying factors influencing these changes.
Peer comparison
Dec 31, 2023