Watsco Inc (WSO)
Receivables turnover
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,283,760 | 7,261,780 | 7,170,740 | 7,301,420 | 7,274,350 | 7,204,990 | 6,951,760 | 6,667,640 | 6,280,190 | 5,923,050 | 5,677,150 | 5,182,890 | 5,054,930 | 4,972,530 | 4,830,780 | 4,847,250 | 4,770,368 | 4,689,374 | 4,590,464 | 4,551,354 |
| Receivables | US$ in thousands | 797,832 | 949,317 | 990,663 | 811,264 | 747,110 | 859,581 | 983,033 | 790,013 | 698,456 | 771,042 | 857,864 | 596,513 | 535,288 | 644,124 | 676,569 | 574,827 | 533,810 | 640,802 | 655,418 | 504,719 |
| Receivables turnover | 9.13 | 7.65 | 7.24 | 9.00 | 9.74 | 8.38 | 7.07 | 8.44 | 8.99 | 7.68 | 6.62 | 8.69 | 9.44 | 7.72 | 7.14 | 8.43 | 8.94 | 7.32 | 7.00 | 9.02 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,283,760K ÷ $797,832K
= 9.13
The receivables turnover ratio measures how efficiently Watsco Inc. is able to collect payments from its customers. A higher ratio indicates a shorter time span for collecting payments, which is generally preferable.
Looking at the data provided, we observe fluctuations in Watsco Inc.'s receivables turnover over the past quarters. In Q4 2023, the receivables turnover ratio was 9.13, which decreased from the previous quarter's 9.74 but was higher compared to Q3 2022 and Q2 2022. This indicates that the company collected receivables more quickly than in the previous quarter.
Overall, the trend in receivables turnover for Watsco Inc. seems relatively stable, with some fluctuations observed between quarters. Further analysis and comparison with industry peers may provide deeper insights into the company's efficiency in managing its accounts receivable.