Williams-Sonoma Inc (WSM)
Receivables turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,750,650 | 8,674,420 | 8,245,940 | 6,788,970 | 5,905,720 |
| Receivables | US$ in thousands | 122,914 | 115,685 | 131,683 | 143,728 | 111,737 |
| Receivables turnover | 63.06 | 74.98 | 62.62 | 47.23 | 52.85 |
January 28, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,750,650K ÷ $122,914K
= 63.06
Williams-Sonoma Inc's receivables turnover ratio has shown fluctuation over the past five years. The ratio was highest in January 2023 at 74.98 times, indicating that the company collected its accounts receivable nearly 75 times during that fiscal year. This suggests efficient management of accounts receivable and a faster cash conversion cycle.
However, in the most recent year, as of January 2024, the receivables turnover ratio decreased to 63.06 times. This could be interpreted as a slight decrease in the efficiency of the company's accounts receivable management compared to the previous year.
Overall, the trend in receivables turnover indicates that Williams-Sonoma Inc has generally been effective in collecting outstanding receivables in a timely manner over the past five years, with some fluctuations in performance. It is important for the company to continue monitoring and managing its accounts receivable to ensure optimal operational efficiency and cash flow management.