Woodward Inc (WWD)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 | 2,857,210 |
| Receivables | US$ in thousands | 499,347 | 373,948 | 334,190 | 386,544 | 424,304 |
| Receivables turnover | 5.74 | 6.29 | 6.63 | 6.38 | 6.73 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,865,510K ÷ $499,347K
= 5.74
The receivables turnover ratio for Woodward Inc has shown a declining trend over the past five years. In Sep 2023, the ratio stood at 3.81, down from 3.87 in Sep 2022, 4.20 in Sep 2021, 4.40 in Sep 2020, and 4.84 in Sep 2019. This indicates that the company's ability to efficiently collect its accounts receivable has weakened over time. A lower receivables turnover ratio could suggest a longer collection period for receivables, which may signal potential liquidity and cash flow challenges for the company. Further analysis of the company's credit policies, customer payment behavior, and collection efforts would be necessary to fully assess the implications of this trend.