Applied Materials Inc (AMAT)
Receivables turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,274,000 | 25,590,000 | 22,827,000 | 16,962,000 | 14,608,000 |
| Receivables | US$ in thousands | 5,577,000 | 6,529,000 | 5,546,000 | 3,125,000 | 2,629,000 |
| Receivables turnover | 4.71 | 3.92 | 4.12 | 5.43 | 5.56 |
October 29, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $26,274,000K ÷ $5,577,000K
= 4.71
The receivables turnover ratio is a measure of how efficiently a company is managing its accounts receivable. It indicates how many times, on average, a company collects its accounts receivable balance during a specific period.
Based on the data provided for Applied Materials Inc. for the past five years:
- In October 2023, the receivables turnover ratio was 5.13, which is an increase from the previous year's ratio of 4.25 in October 2022. This indicates that the company improved its efficiency in collecting its receivables compared to the previous year.
- In October 2022, the ratio was 4.25, a decrease from 4.66 in October 2021. This suggests a decline in the efficiency of collecting receivables compared to the previous year.
- In October 2021, the ratio was 4.66, which decreased from 5.81 in October 2020. The decline in the ratio indicates a decrease in the efficiency of collecting receivables compared to the previous year.
- In October 2020, the ratio was 5.81, a slight decrease from 5.77 in October 2019. This indicates a relatively stable efficiency in collecting receivables compared to the previous year.
Overall, when comparing the receivables turnover ratio over the past five years, it shows a fluctuating trend. However, the most recent data for October 2023 shows an improvement in the efficiency of collecting receivables compared to the previous year, which could be a positive indicator of the company's ability to manage its accounts receivable effectively. It's important to consider the reasons behind these fluctuations to assess the company's credit risk, collection policies, and overall financial health.
Peer comparison
Oct 29, 2023