Wingstop Inc (WING)

Receivables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 625,807 591,043 545,649 497,123 460,055 437,865 413,433 390,037 357,521 324,682 297,794 288,017 282,502 273,756 271,960 264,065 248,811 238,715 224,602 207,059
Receivables US$ in thousands 19,661 16,939 16,059 13,643 12,408 11,951 10,747 — 9,461 8,829 7,234 6,385 8,110 6,052 5,854 5,950 4,929 5,378 5,580 5,140
Receivables turnover 31.83 34.89 33.98 36.44 37.08 36.64 38.47 — 37.79 36.77 41.17 45.11 34.83 45.23 46.46 44.38 50.48 44.39 40.25 40.28

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $625,807K ÷ $19,661K
= 31.83

The receivables turnover ratio for Wingstop Inc has shown some fluctuations over the past few years, ranging from a high of 50.48 in December 2020 to a low of 31.83 in December 2024. This ratio measures how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover ratio typically indicates that Wingstop is collecting its outstanding receivables more quickly, which can be a positive sign of strong customer payment practices.

However, it is essential to note that a declining trend in the receivables turnover ratio, as observed from 2021 to 2024, may raise concerns regarding the company's ability to efficiently collect payments from customers. This could potentially indicate issues with credit policies, customer payment delays, or even potential credit risk within the customer base. It would be advisable for Wingstop Inc to closely monitor and analyze the reasons behind this declining trend in order to address any operational or financial challenges that may be impacting their receivables turnover performance.