Advanced Drainage Systems Inc (WMS)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Receivables | US$ in thousands | 323,576 | 306,945 | 341,753 | 236,191 | 200,028 |
| Receivables turnover | 8.90 | 10.01 | 8.10 | 8.37 | 8.16 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,881,170K ÷ $323,576K
= 8.90
The receivables turnover ratio for Advanced Drainage Systems Inc has shown some fluctuation over the past five years. The ratio was 8.90 in 2024, 10.01 in 2023, 8.10 in 2022, 8.37 in 2021, and 8.16 in 2020. This ratio indicates how efficiently the company is able to collect cash from its customers, with a higher ratio generally being more favorable.
The decreasing trend from 2019 to 2022 may suggest a potential issue with collecting receivables efficiently during those years. However, the ratio increased in 2023 before decreasing again in 2024, albeit remaining relatively stable overall.
Overall, Advanced Drainage Systems Inc's receivables turnover indicates that, on average, the company collects its accounts receivable approximately 8 to 10 times per year. This analysis suggests that the company's ability to manage its receivables has varied over the past five years, with room for potential improvement in receivables collection efficiency.