Valmont Industries Inc (VMI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,116,820 | 4,345,250 | 3,459,920 | 2,854,220 | 2,732,240 |
| Receivables | US$ in thousands | 657,960 | 604,181 | 571,593 | 511,714 | 480,000 |
| Receivables turnover | 6.26 | 7.19 | 6.05 | 5.58 | 5.69 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,116,820K ÷ $657,960K
= 6.26
The receivables turnover of Valmont Industries Inc has shown some fluctuations over the past five years. The ratio was 6.26 in 2023, compared to higher figures of 7.19 in 2022 and 6.05 in 2021. This indicates that the company was able to convert its accounts receivable into cash 6.26 times during 2023.
The trend in receivables turnover suggests that the company has been able to efficiently collect its receivables from customers, with a generally improving performance from 2019 to 2022. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
However, the decrease in 2023 compared to 2022 could suggest a potential slowdown in collections efficiency, which may require further investigation to understand the reasons behind this change. Overall, the company's receivables turnover indicates its ability to efficiently manage and collect its outstanding customer payments.
Peer comparison
Dec 31, 2023