Agilent Technologies Inc (A)
Receivables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,531,000 | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 |
| Receivables | US$ in thousands | 1,471,000 | 1,391,000 | 1,492,000 | 1,238,000 | 1,127,000 |
| Receivables turnover | 4.44 | 4.88 | 4.54 | 5.04 | 4.68 |
October 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,531,000K ÷ $1,471,000K
= 4.44
The receivables turnover ratio measures how efficiently Agilent Technologies Inc is able to collect cash from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is generally a positive sign.
Looking at the trend over the past five years, we can see fluctuations in Agilent's receivables turnover ratio. In 2021, the ratio was at its highest at 5.04, indicating that the company was collecting payments at a faster rate. However, in 2022 and 2024, the ratio decreased to 4.54 and 4.44 respectively, suggesting a slight decline in the efficiency of receivables collection.
Overall, Agilent's receivables turnover ratio seems to be relatively stable around the range of 4.4 to 5.0 in the past five years. This indicates that the company has been able to effectively manage its accounts receivable and collect payments in a timely manner, although there have been some fluctuations in efficiency. It would be important to further investigate the reasons behind these fluctuations to ensure sustainable performance in the future.
Peer comparison
Oct 31, 2024