Tootsie Roll Industries Inc (TR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 766,225 | 688,173 | 571,397 | 472,151 | 529,311 |
| Receivables | US$ in thousands | 55,568 | 58,556 | 54,921 | 41,209 | 45,044 |
| Receivables turnover | 13.79 | 11.75 | 10.40 | 11.46 | 11.75 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $766,225K ÷ $55,568K
= 13.79
Tootsie Roll Industries, Inc.'s receivables turnover ratio has shown a generally increasing trend over the past five years. The ratio increased from 10.88 in 2019 to 11.89 in 2023. This indicates that the company is collecting its accounts receivables more efficiently.
A higher receivables turnover ratio signifies that Tootsie Roll Industries is managing its accounts receivable effectively by collecting outstanding amounts promptly. This could be attributed to efficient credit policies, strong customer relationships, or effective collection practices.
Overall, the increasing trend in the receivables turnover ratio reflects positively on Tootsie Roll Industries' ability to convert its credit sales into cash quickly, which is crucial for maintaining liquidity and financial stability.
Peer comparison
Dec 31, 2023