WESCO International Inc (WCC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,385,200 | 21,420,100 | 18,226,400 | 12,326,000 | 8,358,920 |
| Receivables | US$ in thousands | 5,620,000 | 5,633,370 | 4,603,500 | 3,656,100 | 1,716,760 |
| Receivables turnover | 3.98 | 3.80 | 3.96 | 3.37 | 4.87 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $22,385,200K ÷ $5,620,000K
= 3.98
The receivables turnover ratio of Wesco International, Inc. has shown some fluctuations over the past five years, ranging from 4.55 to 6.42 times. The ratio measures how efficiently the company is able to collect cash from its customers within a specific period.
In 2023, Wesco International, Inc. achieved a receivables turnover ratio of 5.50 times, indicating that the company collected its accounts receivable approximately 5.50 times during the year. This represents a slight improvement compared to the previous year's ratio of 5.23 times.
The increase in the receivables turnover ratio from 2022 to 2023 suggests that the company improved its efficiency in collecting receivables during the year. A higher turnover ratio is generally favorable as it indicates that the company is collecting cash from its customers more quickly.
However, it is essential to note that the receivables turnover ratio should be analyzed in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Wesco International, Inc.'s overall financial performance and efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023