Winnebago Industries Inc (WGO)
Receivables turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,470,200 | 4,916,420 | 3,594,240 | 2,318,070 | 1,985,670 |
| Receivables | US$ in thousands | 189,200 | 254,124 | 253,808 | 220,798 | 158,049 |
| Receivables turnover | 18.34 | 19.35 | 14.16 | 10.50 | 12.56 |
August 26, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,470,200K ÷ $189,200K
= 18.34
The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher turnover ratio indicates a shorter average collection period, which is generally favorable.
Looking at the trend for Winnebago Industries, Inc., we see a consistent improvement in receivables turnover over the past five years. In fiscal year 2023, the company achieved a receivables turnover of 19.56, indicating that it collected receivables nearly 20 times during the year. This represents an improvement from the prior year, where the turnover was 19.51.
Moreover, the company has made substantial progress compared to fiscal 2021, when the turnover was 14.30, and fiscal 2020, when the turnover was 10.67. This suggests that Winnebago has been able to collect its receivables more rapidly, signifying efficient management of its accounts receivable.
This improvement in the turnover ratio may indicate the effectiveness of the company's credit and collection policies, as well as its ability to attract reliable customers. It could also suggest a potential reduction in bad debts or a more streamlined invoicing and collection process.
Overall, the increasing trend in Winnebago Industries, Inc.'s receivables turnover reflects positively on the company's operational efficiency and financial management.
Peer comparison
Aug 26, 2023