Toro Co (TTC)
Receivables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,494,500 | 4,478,920 | 3,930,920 | 3,347,690 | 3,110,320 |
| Receivables | US$ in thousands | 407,400 | 332,700 | 310,279 | 261,135 | 268,768 |
| Receivables turnover | 11.03 | 13.46 | 12.67 | 12.82 | 11.57 |
October 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,494,500K ÷ $407,400K
= 11.03
The receivables turnover ratio for Toro Co. has fluctuated over the past five years, indicating varying levels of effectiveness in collecting outstanding receivables. The ratio decreased from 13.57 in 2022 to 11.18 in 2023, suggesting a potential slowing in the collection of receivables from customers. However, it is important to note that the ratio remains relatively high, indicating that the company is generally efficient in collecting payments from its customers. Further analysis would be required to understand the underlying reasons for the fluctuations in the receivables turnover ratio and to assess the overall effectiveness of Toro Co.'s accounts receivable management.