Urban Outfitters Inc (URBN)

Receivables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	5,141,360	4,788,830	4,548,760	3,434,250	3,969,180
Receivables	US$ in thousands	67,008	70,339	63,760	89,952	88,288
Receivables turnover		76.73	68.08	71.34	38.18	44.96

January 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,141,360K ÷ $67,008K
= 76.73

The trend in Urban Outfitters Inc's receivables turnover over the past five years has been fluctuating. There was a significant increase in the receivables turnover ratio from 38.18 in January 2021 to 76.73 in January 2024, indicating that the company is collecting its accounts receivable more efficiently. However, it is worth noting that the ratio decreased in the interim years (2022 and 2023) before the sharp increase in 2024.

A higher receivables turnover ratio suggests that Urban Outfitters Inc is collecting its accounts receivable more quickly, which can be indicative of strong credit policies or efficient collections processes. Conversely, a lower turnover ratio may indicate potential issues with collecting receivables, slower payment from customers, or a need for improved credit management.

It is essential for Urban Outfitters Inc to continue monitoring and analyzing its receivables turnover ratio to ensure the efficient management of accounts receivable and maintain healthy cash flow levels. Additionally, comparing this ratio to industry benchmarks or peers can provide valuable insights into the company's performance relative to its competitors.