Toro Co (TTC)
Receivables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,583,800 | 4,494,500 | 4,478,920 | 3,930,920 | 3,347,690 |
| Receivables | US$ in thousands | 459,700 | 407,400 | 332,700 | 310,279 | 261,135 |
| Receivables turnover | 9.97 | 11.03 | 13.46 | 12.67 | 12.82 |
October 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,583,800K ÷ $459,700K
= 9.97
The receivables turnover ratio measures how effectively a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Looking at Toro Co's receivables turnover over the past five years, we can see that there has been a fluctuation in the ratio. In 2024, the receivables turnover was 9.97, a decrease from the previous year's ratio of 11.03. This suggests that Toro Co took longer to collect its receivables in 2024 compared to 2023.
However, when compared to the ratios from 2022, 2021, and 2020, the receivables turnover in 2024 is still relatively high. This indicates that Toro Co has historically been efficient in collecting its receivables, even though there was a slight decrease in 2024.
Overall, Toro Co's receivables turnover ratio has shown some variability over the years, but it remains at a level that suggests the company is effectively managing its accounts receivable collection process.