US Foods Holding Corp (USFD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 35,258,000 | 33,807,000 | 29,252,000 | 22,664,000 | 25,756,000 |
| Receivables | US$ in thousands | 1,854,000 | 1,700,000 | 1,469,000 | 1,084,000 | 1,455,000 |
| Receivables turnover | 19.02 | 19.89 | 19.91 | 20.91 | 17.70 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $35,258,000K ÷ $1,854,000K
= 19.02
The receivables turnover ratio for US Foods Holding Corp has exhibited a slightly decreasing trend over the past five years, declining from 20.91 in 2020 to 19.02 in 2023. This indicates that, on average, the company collected its accounts receivable approximately 19 times in 2023.
A high receivables turnover ratio typically suggests that the company is efficient in collecting outstanding receivables, which is a positive indication of liquidity and the company's ability to manage its credit sales effectively.
However, the slight decrease in the receivables turnover ratio of US Foods Holding Corp over the years may imply a potential slowdown in receivables collection efficiency. It is important for the company to monitor and address any issues that may be leading to a decrease in this ratio to ensure optimal cash flow management and overall financial health.
Peer comparison
Dec 31, 2023