Companhia Siderurgica Nacional S.A.(Sid) 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 SID 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', SID's receivables turnover was 10.94, showing efficiency in collecting outstanding receivables. Industry average for Steel/Iron Ore in '2021' stood at 6.13.
• In '2022', SID's receivables turnover was 9.22, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2022' stood at 5.61. Industry average declined by 0.52 from previous year.
• In '2023', SID's receivables turnover was 8.55, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2023' stood at 5.77. Industry average increased by 0.16 compared to previous year.
• In '2024', SID's receivables turnover was 8.78, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Steel/Iron Ore in '2024' stood at 5.83. Industry average increased by 0.06 compared to previous year.
Overall, SID's receivables turnover has consistently declined during the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.