Trimble Inc (TRMB)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,798,700 | 3,676,300 | 3,659,400 | 3,152,000 | 3,271,300 |
| Receivables | US$ in thousands | 706,600 | 676,900 | 664,300 | 620,500 | 608,200 |
| Receivables turnover | 5.38 | 5.43 | 5.51 | 5.08 | 5.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,798,700K ÷ $706,600K
= 5.38
Over the past five years, Trimble Inc's receivables turnover ratio has displayed consistent performance, ranging from 5.08 to 5.51. The receivables turnover ratio measures how efficiently the company is able to collect outstanding receivables from customers during a specific period. A higher turnover ratio suggests that Trimble Inc is managing its accounts receivable effectively, converting sales into cash quickly.
In this case, Trimble Inc's receivables turnover has been relatively stable, with minor fluctuations between 5.08 and 5.51. This indicates that the company has been able to maintain a steady pace in collecting payments from its customers over the years. A consistent receivables turnover ratio is generally a positive sign, suggesting that the company has well-managed credit policies, effective collection procedures, and a strong customer base.
Overall, Trimble Inc's receivables turnover ratio trend over the past five years reflects a solid performance in efficiently converting credit sales into cash, contributing to the company's overall liquidity and financial stability.
Peer comparison
Dec 31, 2023