Worthington Steel Inc (WS)
Receivables turnover
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,430,600 | 3,611,590 | 4,068,930 | 2,127,400 |
| Receivables | US$ in thousands | 476,800 | — | — | — |
| Receivables turnover | 7.20 | — | — | — |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,430,600K ÷ $476,800K
= 7.20
The receivables turnover ratio indicates the efficiency of Worthington Steel Inc in collecting its accounts receivable. The higher the ratio, the more efficient the company is in collecting payments from customers.
For Worthington Steel Inc, the receivables turnover ratio on May 31, 2024, was 7.20. This suggests that during the period, the company collected its accounts receivable approximately 7.20 times. A higher receivables turnover ratio is generally favorable as it implies quicker collection of payments, leading to better cash flow management and reduced credit risk.
However, as data for previous periods is not provided, we cannot determine the trend in the receivables turnover ratio over time. It is essential for Worthington Steel Inc to monitor this ratio consistently to ensure efficient management of its accounts receivable and timely collection of payments from customers.
Peer comparison
May 31, 2024