Worthington Industries Inc (WOR)
Receivables turnover
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Receivables | US$ in thousands | 697,085 | 878,049 | 641,922 | 349,414 | 512,838 |
| Receivables turnover | 7.05 | 5.97 | 4.94 | 8.76 | 7.33 |
May 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,916,390K ÷ $697,085K
= 7.05
The receivables turnover ratio measures the efficiency with which Worthington Enterprises Inc. collects on its credit sales. A higher turnover ratio is generally favorable, as it indicates that the company is collecting receivables more frequently.
Looking at the trend over the past five years, Worthington Enterprises Inc.'s receivables turnover has shown some fluctuations. In 2023, the receivables turnover ratio improved to 7.05, indicating that the company collected its receivables approximately 7.05 times during the year. This reflects a more efficient collection process compared to the previous two years.
In 2022, the ratio was 5.97, down from 2019 but still higher than 2021. This suggests that Worthington Enterprises Inc. may have experienced challenges in collecting its receivables efficiently during that period.
Additionally, the 2023 ratio of 7.05 is also higher than the 2019 ratio of 7.33, indicating an improvement in the company's receivables collection efficiency since then.
Overall, the trend in receivables turnover for Worthington Enterprises Inc. suggests variations in the efficiency of its receivables collection process, with 2023 showing an improvement compared to previous years. However, it would be beneficial to further investigate the factors contributing to these fluctuations to understand the underlying reasons for the changes in receivables turnover.
Peer comparison
May 31, 2023