Woodward Inc (WWD)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,334,880 | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 |
| Receivables | US$ in thousands | 479,250 | 499,347 | 373,948 | 334,190 | 386,544 |
| Receivables turnover | 6.96 | 5.74 | 6.29 | 6.63 | 6.38 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,334,880K ÷ $479,250K
= 6.96
Woodward Inc's receivables turnover ratio has shown a fluctuating trend over the past five years. The ratio measures the efficiency of the company in collecting credit sales from its customers. A higher turnover ratio indicates a more efficient collection process.
In 2024, the company achieved a receivables turnover of 6.96, the highest in the past five years, suggesting an improvement in the company's ability to collect receivables promptly. This may be a result of better credit management practices or a more effective accounts receivable collection process.
Although the ratio has shown variability over the years, it has generally remained above 5, indicating that Woodward Inc has been successful in collecting outstanding receivables within a reasonable timeframe compared to its sales volume.
Overall, the upward trend in receivables turnover ratio indicates an increasing efficiency in managing receivables, which is a positive sign for the company's liquidity and financial health.