Worthington Industries Inc (WOR)
Receivables turnover
| Nov 30, 2024 | Aug 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,146,338 | 1,184,210 | 2,155,762 | 2,185,322 | 3,062,633 | 4,159,375 | 4,450,815 | 5,482,740 | 5,540,060 | 5,242,220 | 4,700,239 | 4,081,108 | 3,579,340 | 3,171,429 | 2,804,737 | 2,809,624 | 2,906,169 | 3,059,119 | 3,386,334 | 3,496,719 |
| Receivables | US$ in thousands | 194,342 | 173,208 | 221,787 | 646,337 | 700,880 | 697,085 | 731,518 | 714,502 | 820,663 | 878,049 | 859,411 | 738,312 | 718,368 | 641,922 | 529,119 | 445,183 | 425,425 | 349,414 | 483,893 | 489,785 |
| Receivables turnover | 5.90 | 6.84 | 9.72 | 3.38 | 4.37 | 5.97 | 6.08 | 7.67 | 6.75 | 5.97 | 5.47 | 5.53 | 4.98 | 4.94 | 5.30 | 6.31 | 6.83 | 8.75 | 7.00 | 7.14 |
November 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,146,338K ÷ $194,342K
= 5.90
The receivables turnover ratio is a measure of a company's efficiency in managing its accounts receivable. It indicates how many times a company collects its average accounts receivable balance during a certain period. A higher receivables turnover ratio is generally favorable as it suggests that the company is collecting its outstanding receivables more quickly.
Analyzing the receivables turnover of Worthington Industries Inc over the reported periods, we observe fluctuations in the ratio. The ratio ranged from a low of 3.38 on November 30, 2023, to a high of 9.72 on February 29, 2024. Generally, a declining trend in the receivables turnover ratio can signify potential issues with collecting outstanding receivables efficiently. Conversely, a rising trend may indicate improvements in the collection process.
During the period under review, the receivables turnover ratio increased from 5.30 on February 28, 2021, to 9.72 on February 29, 2024, with some fluctuations in between. This suggests an improvement in the company's ability to collect outstanding receivables efficiently. However, the ratio declined slightly to 5.90 on November 30, 2024, compared to the previous period.
It is important for Worthington Industries Inc to closely monitor its receivables turnover ratio to ensure that it maintains an optimal balance between collecting receivables promptly and maintaining positive relationships with customers. By analyzing the trend in this ratio over time, the company can assess the effectiveness of its credit and collection policies and make informed decisions to enhance its cash flow management.
Peer comparison
Nov 30, 2024