John Wiley & Sons (WLY)
Receivables turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,870,880 | 1,983,820 | 2,059,930 | 1,931,900 | 1,810,000 |
| Receivables | US$ in thousands | 224,198 | 310,121 | 331,960 | 311,571 | 309,384 |
| Receivables turnover | 8.34 | 6.40 | 6.21 | 6.20 | 5.85 |
April 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,870,880K ÷ $224,198K
= 8.34
The receivables turnover for John Wiley & Sons has been consistently increasing over the past five years, reflecting the company's ability to efficiently collect payments from its customers.
In 2020, the receivables turnover was 5.85, and it steadily improved to 6.20 in 2021, 6.21 in 2022, 6.40 in 2023, and finally reaching 8.34 in 2024. This increasing trend indicates that the company is managing its accounts receivable more effectively, possibly through better credit policies, timely collections, or improved customer creditworthiness.
A higher receivables turnover ratio signifies that John Wiley & Sons is converting its accounts receivable into cash more frequently within a year, which is a positive sign of liquidity and operational efficiency. It suggests that the company is efficient in granting credit and collecting payments, thereby reducing the risk of bad debts and potential cash flow issues.
Overall, the improving receivables turnover ratio demonstrates John Wiley & Sons' effective credit management practices and its ability to maintain strong cash flows from customer payments.
Peer comparison
Apr 30, 2024