Toro Co (TTC)
Receivables turnover
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,550,900 | 4,443,272 | 4,353,172 | 4,345,472 | 4,494,472 | 4,686,560 | 4,771,130 | 4,687,980 | 4,478,917 | 4,272,115 | 4,090,565 | 3,991,095 | 3,930,922 | 3,818,221 | 3,681,069 | 3,468,487 | 3,362,350 | 3,255,772 | 3,261,817 | 3,294,455 |
| Receivables | US$ in thousands | 459,700 | 532,300 | 623,100 | 489,100 | 407,400 | 390,700 | 462,000 | 377,300 | 332,700 | 350,657 | 439,333 | 366,270 | 310,279 | 301,234 | 391,236 | 306,865 | 261,135 | 294,672 | 400,444 | 321,192 |
| Receivables turnover | 9.90 | 8.35 | 6.99 | 8.88 | 11.03 | 12.00 | 10.33 | 12.43 | 13.46 | 12.18 | 9.31 | 10.90 | 12.67 | 12.68 | 9.41 | 11.30 | 12.88 | 11.05 | 8.15 | 10.26 |
October 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,550,900K ÷ $459,700K
= 9.90
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers in a given period. A higher receivables turnover ratio indicates that a company is collecting cash from its customers more quickly, which is generally seen as a positive sign.
Analyzing Toro Co's receivables turnover over the past 20 quarters, we can observe some fluctuations in the ratio. The ratio ranged from a low of 6.99 to a high of 13.46 during this period, indicating variations in the company's ability to collect receivables efficiently.
The highest receivables turnover ratio was observed in the quarter ending Oct 31, 2022, at 13.46, suggesting that Toro Co was exceptionally efficient in collecting cash from its customers during that period. On the other hand, the lowest ratio of 6.99 was recorded in the quarter ending May 3, 2024, indicating a relative slowdown in the collections process.
Overall, Toro Co's receivables turnover ratio has shown some volatility, but it has generally been within a reasonable range. It is essential for the company to monitor this ratio consistently to ensure that it is effectively managing its accounts receivable and maintaining a healthy cash flow position.