Analog Devices Inc (ADI)

Receivables turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	11,300,180	12,053,800	12,591,670	12,643,210	12,366,050	11,809,200	10,683,340	9,383,500	8,122,390	7,048,520	6,456,420	6,153,710	5,809,360	5,554,460	5,469,200	5,493,200	5,702,740	5,940,280	6,144,430	6,236,970
Receivables	US$ in thousands	1,196,720	1,469,730	1,616,240	1,616,260	1,629,870	1,800,460	1,742,650	1,608,250	1,636,930	1,459,060	823,163	—	826,964	737,536	—	—	—	635,136	—	—
Receivables turnover		9.44	8.20	7.79	7.82	7.59	6.56	6.13	5.83	4.96	4.83	7.84	—	7.02	7.53	—	—	—	9.35	—	—

February 3, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,300,180K ÷ $1,196,720K
= 9.44

The receivables turnover ratio of Analog Devices Inc. has shown a positive trend over the past eight quarters, indicating the company's ability to efficiently collect payments from its customers. In Q1 2024, the receivables turnover was at its highest at 9.67, which means the company collected its accounts receivable almost 9.67 times during the quarter. This was an improvement from the previous quarter (Q4 2023) where the ratio was 8.37.

The trend of increasing receivables turnover ratios from Q1 2023 (7.72) to Q1 2024 suggests that Analog Devices has been managing its accounts receivable more effectively, possibly by improving credit policies or collecting payments more efficiently. This indicates that the company is better at converting its credit sales into cash, which is a positive indicator of its liquidity and potential cash flow.

Overall, the increasing trend in receivables turnover ratios for Analog Devices Inc. demonstrates the company's strength in managing its accounts receivable effectively and converting them into cash in a timely manner.