Analog Devices Inc (ADI)

Receivables turnover

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Revenue	US$ in thousands	9,439,960	12,053,800	11,813,500	6,931,870	5,409,750
Receivables	US$ in thousands	1,336,330	1,469,730	1,800,460	1,459,060	737,536
Receivables turnover		7.06	8.20	6.56	4.75	7.33

November 2, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,439,960K ÷ $1,336,330K
= 7.06

Analog Devices Inc's receivables turnover ratio has fluctuated over the past five years, ranging from a low of 4.75 in October 2021 to a high of 8.20 in October 2023. The receivables turnover ratio indicates how efficiently the company is able to collect payment from its customers. A higher turnover ratio typically implies a more efficient collection process, whereas a lower ratio may suggest potential difficulties in collecting outstanding receivables.

In the most recent period ending on November 2, 2024, Analog Devices Inc's receivables turnover ratio stood at 7.06. This indicates that the company collected its accounts receivable approximately 7.06 times during the year, or approximately every 52 days. While the turnover ratio has decreased compared to the previous year, it is still at a relatively healthy level, suggesting effective management of accounts receivable.

Overall, Analog Devices Inc's receivables turnover ratio reflects a decent level of efficiency in collecting outstanding payments from customers over the years, although there have been fluctuations in performance from one period to another. Continued monitoring of this ratio will be important to assess the company's ability to effectively manage its accounts receivable in the future.