Analog Devices Inc (ADI)
Receivables turnover
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,053,800 | 11,813,500 | 6,931,870 | 5,409,750 | 5,761,990 |
| Receivables | US$ in thousands | 1,469,730 | 1,800,460 | 1,459,060 | 737,536 | 635,136 |
| Receivables turnover | 8.20 | 6.56 | 4.75 | 7.33 | 9.07 |
October 28, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,053,800K ÷ $1,469,730K
= 8.20
The receivables turnover ratio measures the efficiency of a company in collecting its accounts receivable during a specific period. A higher ratio indicates better efficiency in collecting payments from customers.
Analog Devices Inc.'s receivables turnover has fluctuated over the last five years. In 2019, the ratio was 9.43, signifying the company's ability to collect payments from customers relatively quickly. However, the ratio decreased to 7.60 in 2020, indicating a slight decline in receivables turnover efficiency.
The ratio improved in 2021, reaching 5.02, reflecting a notable decrease in the speed of collecting accounts receivable. In 2022, there was a marked improvement in efficiency, with the turnover ratio increasing to 6.67.
In the most recent period, as of October 28, 2023, Analog Devices Inc.'s receivables turnover ratio stands at 8.37, indicating a substantial enhancement in the efficiency of collecting payments from customers compared to the prior year.
Overall, despite fluctuations, the company has shown an ability to maintain relatively high levels of receivables turnover, which suggests efficient management of its accounts receivable and the credit extended to customers.
Peer comparison
Oct 28, 2023