Apple Inc (AAPL)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 379,352,000 | 391,397,000 | 363,172,000 | 271,642,000 | 256,598,000 |
| Receivables | US$ in thousands | 60,985,000 | 60,932,000 | 51,506,000 | 37,445,000 | 45,804,000 |
| Receivables turnover | 6.22 | 6.42 | 7.05 | 7.25 | 5.60 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $379,352,000K ÷ $60,985,000K
= 6.22
The receivables turnover is a financial ratio that measures how efficiently a company is able to collect cash from its customers for credit sales. It is calculated by dividing the net credit sales by the average accounts receivable.
The trend of Apple Inc's receivables turnover over the past five years shows a consistent and relatively stable performance. The receivables turnover ratio for the fiscal year ending September 30, 2023, stands at 6.28, a slight decrease from the previous year's 6.47. This implies that, on average, Apple collected its outstanding receivables approximately 6.28 times during the year, down from 6.47 times in the preceding year.
A lower receivables turnover ratio could indicate a longer time for the company to collect outstanding receivables, potentially indicating issues with credit policies, collection procedures, or customer creditworthiness. However, in the case of Apple Inc, the trend of the ratio hovering around 6 to 7 times suggests that the company has been effectively managing its accounts receivable and efficiently collecting cash from credit sales.
The slight decrease in the receivables turnover ratio from 2022 to 2023 could be attributed to a variety of factors, such as changes in credit terms, sales volume, customer payment behavior, or the timing of large transactions. Nonetheless, the overall trend indicates that Apple Inc has maintained a strong ability to convert its credit sales into cash, demonstrating efficient management of its accounts receivable.
In conclusion, the consistent and relatively high receivables turnover ratios of Apple Inc over the past five years imply that the company has been successful in efficiently collecting cash from its credit sales, contributing to its overall financial health and stability.
Peer comparison
Sep 30, 2023