Agilysys Inc (AGYS)

Receivables turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	238,116	228,927	218,281	207,406	198,852	192,499	182,035	172,185	163,404	152,529	149,739	146,206	137,288	140,489	145,785	152,147	160,729	157,688	151,737	145,217
Receivables	US$ in thousands	29,441	49,366	27,762	25,581	22,378	31,953	21,030	22,901	25,175	24,957	19,269	22,812	25,732	30,940	20,173	30,494	35,869	29,794	23,117	25,690
Receivables turnover		8.09	4.64	7.86	8.11	8.89	6.02	8.66	7.52	6.49	6.11	7.77	6.41	5.34	4.54	7.23	4.99	4.48	5.29	6.56	5.65

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $238,116K ÷ $29,441K
= 8.09

The receivables turnover for Agilysys Inc has exhibited fluctuations over the past 20 quarters, ranging from a low of 4.48 to a high of 8.89. The average receivables turnover over this period is approximately 6.63.

A higher receivables turnover ratio indicates that the company is able to efficiently collect payments from its customers in a shorter period, which can be seen in quarters such as Mar 31, 2024, and Jun 30, 2023. This implies effective credit policies and strong collection procedures.

On the other hand, lower receivables turnover ratios, such as in Dec 31, 2019, and Sep 30, 2020, suggest that the company may be facing difficulties in collecting receivables promptly. This could be due to lenient credit policies, potential issues with customer creditworthiness, or inefficiencies in the collection process.

Overall, analyzing the receivables turnover provides insights into Agilysys Inc's ability to manage its accounts receivables effectively, which is crucial for maintaining liquidity and managing cash flows in the long term. Further investigation into the reasons behind the fluctuations in receivables turnover can help pinpoint areas for improvement in the company's credit and collection practices.