Woodward Inc (WWD)
Receivables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,311,919 | 3,214,747 | 3,156,401 | 3,033,346 | 2,865,507 | 2,731,573 | 2,548,442 | 2,427,467 | 2,353,549 | 2,281,598 | 2,224,172 | 2,218,179 | 2,214,167 | 2,184,932 | 2,152,575 | 2,292,043 | 2,474,487 | 2,679,760 | 2,904,004 | 2,938,143 |
| Receivables | US$ in thousands | 479,250 | 494,062 | 562,943 | 495,044 | 499,347 | 484,672 | 442,187 | 348,041 | 373,948 | 334,677 | 338,990 | 274,239 | 334,190 | 393,046 | 408,439 | 346,720 | 386,544 | 369,481 | 437,044 | 375,717 |
| Receivables turnover | 6.91 | 6.51 | 5.61 | 6.13 | 5.74 | 5.64 | 5.76 | 6.97 | 6.29 | 6.82 | 6.56 | 8.09 | 6.63 | 5.56 | 5.27 | 6.61 | 6.40 | 7.25 | 6.64 | 7.82 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,311,919K ÷ $479,250K
= 6.91
Receivables turnover measures the efficiency of a company in collecting its accounts receivable during a specific period. A higher turnover indicates that the company is collecting payments more quickly.
Analyzing Woodward Inc's receivables turnover over the past few quarters, we can see some fluctuations in the ratio. In the most recent quarter, ending September 30, 2024, the receivables turnover was 6.91, which is higher compared to the previous quarter's 6.51. This suggests that Woodward Inc was able to convert its accounts receivable into cash more efficiently in the latest period.
Looking further back, the trend in receivables turnover has varied, with some quarters showing higher turnover ratios and others lower. The turnover ratio peaked at 8.09 in the quarter ending December 31, 2021, indicating a particularly efficient collection of receivables at that time.
Overall, Woodward Inc's receivables turnover has shown some variability but generally remains within a reasonable range, indicating that the company has been managing its accounts receivable effectively. Further analysis could be done to assess the reasons for fluctuations in turnover ratios and to identify any areas for improvement in the company's receivables management practices.