Advanced Drainage Systems Inc (WMS)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Receivables | US$ in thousands | 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 | 200,028 | 156,973 | 250,470 | 231,829 |
| Receivables turnover | 8.92 | 11.84 | 8.07 | 8.61 | 10.01 | 12.93 | 8.23 | 7.05 | 8.11 | 8.36 | 6.37 | 7.05 | 8.38 | 10.10 | 6.97 | 7.30 | 8.36 | 10.02 | 5.98 | 6.08 |
March 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,884,829K ÷ $323,576K
= 8.92
The receivables turnover ratio for Advanced Drainage Systems Inc has fluctuated over the past few quarters. The ratio indicates the number of times, on average, the company collects its accounts receivable during a specific period.
In general, a higher receivables turnover ratio is considered more favorable as it suggests that the company is efficient in collecting payments from its customers. Looking at the trend in the ratios provided, we observe variability in the company's collection efficiency.
The ratio ranged from a low of 5.98 in June 2019 to a high of 12.93 in December 2022, indicating significant variability in the company's collection performance. This variability may be influenced by factors such as changes in credit policies, customer payment behavior, or economic conditions affecting customer liquidity.
It is important for stakeholders to monitor this ratio closely as a declining trend could indicate potential issues with the company's credit policies or customers' ability to pay, while a consistently high ratio may suggest efficient credit management practices.
Overall, while the receivables turnover ratio for Advanced Drainage Systems Inc has fluctuated over the quarters, further analysis and comparison with industry benchmarks would provide deeper insights into the effectiveness of the company's credit and collection processes.