Donegal(Dgica) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for DGICA compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', DGICA's receivables turnover was 1.26, showing efficiency in collecting outstanding receivables. Industry average for Property-Casualty Insurers in '2021' stood at 1.98.
• In '2022', DGICA's receivables turnover was 1.32, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2022' stood at 1.83. Industry average declined by 0.15 from previous year.
• In '2023', DGICA's receivables turnover was 1.46, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2023' stood at 1.97. Industry average increased by 0.14 compared to previous year.
• In '2024', DGICA's receivables turnover was 1.59, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2024' stood at 2.02. Industry average increased by 0.05 compared to previous year.
Overall, DGICA's receivables turnover has steadily improved over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.