Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
IQVIA Holdings Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Receivables Turnover
- The receivables turnover ratio shows a general upward trend from March 2019 through December 2021, rising from approximately 4.35 to a peak of 5.81. This indicates an improvement in the efficiency of the company’s collection of receivables during this period. After December 2021, the ratio begins to decline gradually, falling to around 4.60 by September 2023, suggesting a modest decrease in collection efficiency in recent quarters.
- Working Capital Turnover
- The working capital turnover ratio exhibits significant volatility over the observed periods. Initially, from March 2019 through December 2019, the ratio ranged from about 21.19 to 30.62, suggesting fluctuations in how effectively working capital was deployed. Notably, in the first quarter of 2020, the ratio spikes sharply to 61.26, indicating an exceptional increase in turnover efficiency, which quickly subsided in subsequent quarters. After 2020, the data becomes sparse, limiting the possibility of clear trend identification beyond this point.
- Average Receivable Collection Period
- The average receivable collection period shows a decreasing trend from 85 days in March 2019 to a low of approximately 63 days in September 2021, reflecting faster collection of receivables and thus improved liquidity. Following this period, the days gradually increase, reaching around 79 days by September 2023, indicating a slowdown in the collection process in recent quarters.
- Summary
- Collectively, the ratios suggest that the company improved its receivables management efficiency and working capital utilization through 2021. Since then, however, there has been a reversal, with receivables turnover declining and the average collection period increasing, pointing to a potential easing in credit collection discipline or changes in credit policies. The working capital turnover displayed extreme variability, peaking notably during early 2020, but limited data hinders a complete assessment of recent trends in this metric.
Turnover Ratios
Average No. Days
Receivables Turnover
IQVIA Holdings Inc., receivables turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Revenues | 3,736) | 3,728) | 3,652) | 3,739) | 3,562) | 3,541) | 3,568) | 3,636) | 3,391) | 3,438) | 3,409) | 3,298) | 2,786) | 2,521) | 2,754) | 2,895) | 2,769) | 2,740) | 2,684) | 2,688) | 2,594) | 2,567) | 2,563) | |||||||
| Trade accounts receivable and unbilled services, net | 3,227) | 3,139) | 3,063) | 2,917) | 2,640) | 2,679) | 2,619) | 2,551) | 2,330) | 2,276) | 2,361) | 2,410) | 2,414) | 2,371) | 2,634) | 2,582) | 2,514) | 2,401) | 2,461) | 2,394) | 2,298) | 2,172) | 2,250) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Receivables turnover1 | 4.60 | 4.68 | 4.73 | 4.94 | 5.42 | 5.28 | 5.36 | 5.44 | 5.81 | 5.68 | 5.09 | 4.71 | 4.54 | 4.61 | 4.24 | 4.29 | 4.33 | 4.46 | 4.28 | 4.35 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 4.83 | 4.88 | 4.95 | 5.16 | 5.38 | 5.10 | 5.29 | 5.63 | 5.94 | 5.42 | 5.24 | 5.19 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 4.17 | 4.34 | 4.34 | 4.46 | 4.60 | 4.62 | 4.81 | 4.96 | 5.11 | 5.39 | 5.41 | 5.36 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 6.15 | 6.64 | 6.89 | 6.40 | 7.09 | 6.81 | 6.87 | 6.36 | 6.69 | 6.51 | 6.28 | 5.51 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 3.93 | 3.93 | 3.68 | 4.14 | 4.35 | 4.57 | 4.64 | 4.24 | 4.69 | 4.58 | 4.56 | 4.18 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 5.68 | 6.43 | 6.43 | 5.65 | 6.16 | 6.60 | 7.18 | 6.01 | 5.95 | 6.34 | 6.43 | 4.98 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 5.91 | 5.36 | 5.65 | 5.88 | 6.04 | 5.92 | 6.08 | 6.14 | 6.13 | 6.00 | 5.64 | 6.08 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 5.71 | 5.29 | 5.56 | 6.27 | 6.22 | 5.93 | 5.49 | 5.28 | 5.56 | 6.00 | 5.65 | 6.11 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 6.25 | 7.66 | 7.57 | 9.16 | 6.21 | 6.68 | 6.99 | 7.08 | 5.81 | 5.23 | 4.70 | 5.28 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 2.35 | 2.47 | 2.42 | 2.28 | 2.47 | 2.76 | 3.41 | 2.66 | 2.48 | 1.77 | 2.20 | 2.07 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 5.19 | 5.43 | 5.53 | 5.53 | 5.76 | 5.53 | 5.21 | 4.92 | 7.03 | 6.99 | 6.46 | 5.61 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 6.27 | 6.11 | 5.95 | 6.19 | 6.28 | 6.26 | 6.15 | 6.66 | 6.48 | 7.19 | 6.56 | 7.01 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Receivables turnover
= (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
÷ Trade accounts receivable and unbilled services, net
= (3,736 + 3,728 + 3,652 + 3,739)
÷ 3,227 = 4.60
2 Click competitor name to see calculations.
- Revenues Trend
- The revenues exhibit a generally increasing trend over the analyzed periods. Starting at approximately 2,563 million USD in March 2018, revenues showed moderate growth reaching near 2,895 million USD by December 2019. Following a dip to about 2,521 million USD in June 2020, coinciding with the early phase of the global pandemic, revenues rapidly recovered and increased substantially, peaking at 3,739 million USD in December 2022. The figure stabilizes around the 3,700 million USD level through the first three quarters of 2023, suggesting sustained revenue strength.
- Trade Accounts Receivable and Unbilled Services, Net
- The net trade accounts receivable and unbilled services follow a generally rising pattern, reflecting growth in outstanding amounts. Values rose from approximately 2,250 million USD in March 2018 to around 2,582 million USD by December 2019, then demonstrated some fluctuations with a slight dip in mid-2020 followed by a steady rise to 3,227 million USD by September 2023. This trend suggests increasing sales on credit or extended billing cycles, consistent with the growth in revenues.
- Receivables Turnover Ratio
- The receivables turnover ratio, calculated starting from September 2018, exhibits moderate fluctuations. Initial ratios hovered around 4.3 to 4.5, indicating the frequency of collecting receivables approximately 4.3 to 4.5 times per year. There was an improvement in turnover efficiency observed between March 2021 and December 2021, with ratios increasing above 5.5, signaling faster collections. Post-December 2021, the ratio gradually declined to values just below 4.7 by September 2023, suggesting a slight reduction in collection efficiency or longer receivables duration.
- Summary Insights
- The data indicate robust revenue growth overall, with some volatility likely related to external events impacting the second quarter of 2020. The steady increase in trade accounts receivable aligns with rising sales volume but may warrant attention due to a slight decline in the receivables turnover ratio in recent quarters. This could imply increasing credit risk or delayed collections. The previously improving turnover ratio in 2021 points to efforts or conditions favoring faster cash conversion that have since moderated. Continuous monitoring of receivables management is advisable to maintain liquidity alongside revenue growth.
Working Capital Turnover
IQVIA Holdings Inc., working capital turnover calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 5,208) | 5,329) | 5,328) | 4,981) | 4,752) | 4,911) | 4,772) | 4,763) | 4,534) | 5,068) | 5,579) | 5,090) | 4,645) | 4,208) | 4,277) | 4,126) | 3,995) | 3,978) | 3,999) | 3,874) | 3,696) | 3,587) | 3,724) | |||||||
| Less: Current liabilities | 6,589) | 6,543) | 6,657) | 5,578) | 5,253) | 5,104) | 5,157) | 5,241) | 4,847) | 4,819) | 4,868) | 4,558) | 4,139) | 3,843) | 3,907) | 3,945) | 3,576) | 3,495) | 3,502) | 3,534) | 3,380) | 3,166) | 3,199) | |||||||
| Working capital | (1,381) | (1,214) | (1,329) | (597) | (501) | (193) | (385) | (478) | (313) | 249) | 711) | 532) | 506) | 365) | 370) | 181) | 419) | 483) | 497) | 340) | 316) | 421) | 525) | |||||||
| Revenues | 3,736) | 3,728) | 3,652) | 3,739) | 3,562) | 3,541) | 3,568) | 3,636) | 3,391) | 3,438) | 3,409) | 3,298) | 2,786) | 2,521) | 2,754) | 2,895) | 2,769) | 2,740) | 2,684) | 2,688) | 2,594) | 2,567) | 2,563) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | 51.93 | 16.90 | 21.35 | 21.65 | 29.97 | 30.16 | 61.26 | 25.97 | 22.17 | 21.19 | 30.62 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | 130.12 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 0.81 | 0.84 | 0.82 | 3.82 | 2.52 | 3.67 | 4.34 | 3.37 | 2.55 | 5.35 | 2.84 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 10.47 | 5.53 | 5.55 | 8.30 | 5.75 | 4.92 | 6.24 | 3.95 | 4.43 | 4.24 | 4.25 | 3.72 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 2.18 | 3.08 | 3.81 | 4.20 | 5.00 | 5.43 | 5.91 | 8.40 | 7.98 | 3.12 | 3.45 | 3.48 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 31.79 | 12.21 | 5.77 | 31.84 | 14.71 | 19.45 | 8.19 | 8.33 | 6.73 | 12.14 | 5.21 | 4.93 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 6.74 | 84.15 | 9.14 | 8.42 | 8.56 | 6.87 | 6.68 | 8.54 | 7.25 | 7.09 | 7.06 | 5.30 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 9.37 | 14.06 | 23.02 | — | 4.88 | 5.02 | 5.57 | 5.95 | 5.97 | 5.93 | 7.26 | 9.44 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 6.69 | 8.86 | 5.63 | 5.16 | 5.58 | 6.39 | 6.09 | 7.62 | 6.51 | 6.97 | 84.97 | 109.83 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 1.62 | 2.03 | 6.89 | 11.00 | 3.83 | 5.05 | 6.10 | 4.78 | 4.29 | 4.21 | 3.60 | 4.58 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 0.87 | 0.92 | 0.90 | 0.96 | 1.09 | 1.14 | 1.46 | 1.59 | 1.35 | 1.29 | 1.35 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 4.86 | 7.40 | 10.13 | 5.46 | 5.40 | 6.03 | 6.13 | 5.87 | 2.30 | 3.10 | 3.36 | 2.76 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 0.87 | 0.90 | 0.93 | 0.85 | 0.90 | 0.93 | 0.97 | 1.02 | 1.03 | 1.01 | 0.97 | 0.99 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Working capital turnover
= (RevenuesQ3 2023
+ RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022)
÷ Working capital
= (3,736 + 3,728 + 3,652 + 3,739)
÷ -1,381 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited notable fluctuations throughout the observed periods. Initially, it decreased from 525 million USD in March 2018 to a low point of 181 million USD at the end of 2019. Following this, a recovery was observed in 2020, peaking at 711 million USD by March 2021. After this peak, working capital sharply declined, becoming negative by September 2021 (-313 million USD) and reaching its lowest value at -1381 million USD by September 2023, reflecting a notable deterioration in short-term financial health and liquidity over recent quarters.
- Revenues
- Revenues showed relative stability with moderate growth over the span. Starting at 2563 million USD in March 2018, revenue reached a peak of 3739 million USD in December 2022. Although minor quarterly fluctuations appeared, revenues generally increased year-over-year. A slight dip occurred in early and mid-2020 likely impacted by external factors, but recovery ensued with consistent growth through 2021 to 2023, maintaining a range above 3500 million USD in the latest quarters.
- Working Capital Turnover
- The working capital turnover ratio data was limited, available only in select quarters in 2019 and 2020. In those quarters, the ratio showed significant variance from 16.9 to 61.26, indicating an instability or inconsistency in how efficiently the company was generating revenue from working capital during that period. The absence of recent data limits trend analysis in this metric beyond early 2020.
- Summary Insights
- The divergence between stable and growing revenues and declining working capital, especially turning negative, suggests increasing operational leverage or strained liquidity conditions. Despite healthy revenue performance, the worsening working capital position might indicate pressures on the company’s ability to meet short-term obligations. The limited data on working capital turnover ratio restricts the ability to assess efficiency trends fully, but available figures highlight prior volatility. Management may need to address working capital management to ensure sustainable financial stability going forward.
Average Receivable Collection Period
IQVIA Holdings Inc., average receivable collection period calculation (quarterly data)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||
| Receivables turnover | 4.60 | 4.68 | 4.73 | 4.94 | 5.42 | 5.28 | 5.36 | 5.44 | 5.81 | 5.68 | 5.09 | 4.71 | 4.54 | 4.61 | 4.24 | 4.29 | 4.33 | 4.46 | 4.28 | 4.35 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||
| Average receivable collection period1 | 79 | 78 | 77 | 74 | 67 | 69 | 68 | 67 | 63 | 64 | 72 | 77 | 80 | 79 | 86 | 85 | 84 | 82 | 85 | 84 | — | — | — | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | 76 | 75 | 74 | 71 | 68 | 72 | 69 | 65 | 61 | 67 | 70 | 70 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 88 | 84 | 84 | 82 | 79 | 79 | 76 | 74 | 71 | 68 | 67 | 68 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 59 | 55 | 53 | 57 | 51 | 54 | 53 | 57 | 55 | 56 | 58 | 66 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 93 | 93 | 99 | 88 | 84 | 80 | 79 | 86 | 78 | 80 | 80 | 87 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 64 | 57 | 57 | 65 | 59 | 55 | 51 | 61 | 61 | 58 | 57 | 73 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 62 | 68 | 65 | 62 | 60 | 62 | 60 | 59 | 60 | 61 | 65 | 60 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 64 | 69 | 66 | 58 | 59 | 62 | 66 | 69 | 66 | 61 | 65 | 60 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 58 | 48 | 48 | 40 | 59 | 55 | 52 | 52 | 63 | 70 | 78 | 69 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 156 | 148 | 151 | 160 | 148 | 132 | 107 | 137 | 147 | 206 | 166 | 177 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 70 | 67 | 66 | 66 | 63 | 66 | 70 | 74 | 52 | 52 | 56 | 65 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 58 | 60 | 61 | 59 | 58 | 58 | 59 | 55 | 56 | 51 | 56 | 52 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.60 = 79
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates a generally increasing trend from March 2019 to September 2021, rising from approximately 4.29 to a peak of 5.81. This indicates an improvement in the efficiency of collecting receivables during this period. Following the peak, there is a slight decline and stabilization, with values ranging between 5.44 and 4.60 from December 2021 through September 2023. This suggests a modest reduction in turnover efficiency but still maintaining levels higher than those observed before 2021.
- Average Receivable Collection Period
- The average collection period, expressed in days, reveals an inverse pattern relative to the turnover ratio, which is expected. Starting from 84 days in March 2019, it decreases steadily to a low of 63 days in September 2021, indicating faster collection of receivables. After this point, the collection period slightly increases, reaching around 78 to 79 days between June and September 2023. This reflects a modest elongation in the time required to collect receivables but still an improvement relative to the earliest period observed.
- Overall Insights
- The data overall indicates enhanced efficiency in receivables management from 2019 through late 2021, as evidenced by increased turnover and reduced collection days. Post-2021, there is a mild reversal in these trends, potentially suggesting changing collection dynamics or market conditions impacting the process. However, the company continues to maintain better receivables metrics compared to the period prior to 2019.