Vista Outdoor Inc (VSTO)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,749,240 | 3,020,620 | 3,019,040 | 2,208,180 | 1,715,210 |
| Receivables | US$ in thousands | 355,903 | 339,373 | 356,773 | 301,575 | 313,517 |
| Receivables turnover | 7.72 | 8.90 | 8.46 | 7.32 | 5.47 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,749,240K ÷ $355,903K
= 7.72
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables during a specific period. A higher ratio generally indicates a shorter time it takes for a company to collect outstanding debts from its customers.
Based on the data provided, Vista Outdoor Inc's receivables turnover ratio has demonstrated improving efficiency over the past five years. The ratio has shown an upward trend from 5.47 in 2020 to 7.72 in 2024. This indicates that the company has been collecting its accounts receivable more quickly in recent years.
The highest receivables turnover ratio was observed in 2023 at 8.90, suggesting that the company was particularly efficient in collecting its outstanding receivables during that year. The fluctuations in the ratio over the years may be due to changes in the company's credit policies, customer payment behavior, or overall economic conditions.
Overall, an increasing trend in the receivables turnover ratio is a positive signal for Vista Outdoor Inc, indicating effective management of accounts receivable and potentially improved cash flow from operations.
Peer comparison
Mar 31, 2024