Advanced Drainage Systems Inc (WMS)
Receivables turnover
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,904,245 | 2,942,324 | 2,914,153 | 2,911,763 | 2,874,473 | 2,838,192 | 2,830,992 | 2,934,981 | 3,071,121 | 3,131,749 | 3,191,939 | 3,014,201 | 2,769,315 | 2,534,937 | 2,305,725 | 2,143,441 | 1,982,780 | 1,909,739 | 1,817,018 | 1,768,736 |
| Receivables | US$ in thousands | 314,011 | 247,940 | 357,636 | 369,256 | 323,576 | 240,810 | 352,562 | 342,338 | 306,945 | 242,485 | 387,952 | 427,620 | 341,753 | 303,140 | 361,466 | 303,736 | 236,191 | 188,744 | 260,180 | 241,830 |
| Receivables turnover | 9.25 | 11.87 | 8.15 | 7.89 | 8.88 | 11.79 | 8.03 | 8.57 | 10.01 | 12.92 | 8.23 | 7.05 | 8.10 | 8.36 | 6.38 | 7.06 | 8.39 | 10.12 | 6.98 | 7.31 |
March 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,904,245K ÷ $314,011K
= 9.25
The receivables turnover ratio for Advanced Drainage Systems Inc has shown fluctuations over the analyzed period. The ratio ranged from a low of 6.38 in September 30, 2021, to a high of 12.92 in December 31, 2022, suggesting differences in the efficiency of the company in collecting receivables.
On average, the company collects its accounts receivables approximately 8 times a year. A higher receivables turnover ratio indicates that the company is more efficient in collecting outstanding receivables, which is generally a positive sign.
However, it is important to consider the reason behind significant fluctuations in the ratio. A sudden increase in the ratio, as seen in December 31, 2022, may indicate stricter credit policies or more efficient collection strategies. Conversely, a sharp decrease in the ratio, as observed in September 30, 2021, could suggest issues with customer payment delays or credit risk.
Overall, monitoring the receivables turnover ratio over time can provide valuable insights into the company's liquidity, collection efficiency, and credit management practices.