Vestis Corporation (VSTS)
Receivables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,805,396 | 2,837,440 | 2,848,575 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 |
| Receivables | US$ in thousands | 177,271 | 409,926 | 405,954 | 403,265 | — | — | — |
| Receivables turnover | 15.83 | 6.92 | 7.02 | 7.05 | — | — | — |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,805,396K ÷ $177,271K
= 15.83
The receivables turnover ratio for Vestis Corporation has shown a significant increase over the past few quarters, indicating a more efficient management of accounts receivable. In the most recent quarter, ending September 30, 2024, the ratio was 15.83, which means that on average, Vestis Corporation collected its accounts receivable approximately 15.83 times during that period.
This improvement in the receivables turnover ratio suggests that Vestis Corporation has been able to collect its outstanding receivables at a faster rate compared to previous periods. A higher turnover ratio is generally favorable as it implies that the company is collecting payments quickly from its customers, leading to better cash flow management and reduced risk of bad debts.
It is important to note that the absence of data for the September 30, 2023, and subsequent quarters makes it difficult to track the trend accurately over time. However, based on the available data, it is evident that Vestis Corporation has made notable progress in managing its accounts receivable efficiently. This improvement in receivables turnover bodes well for the company's financial health and operational performance.
Peer comparison
Sep 30, 2024