Applied Materials Inc (AMAT)
Receivables turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,176,000 | 26,274,000 | 25,590,000 | 22,827,000 | 16,962,000 |
| Receivables | US$ in thousands | 5,354,000 | 5,577,000 | 6,529,000 | 5,546,000 | 3,125,000 |
| Receivables turnover | 5.08 | 4.71 | 3.92 | 4.12 | 5.43 |
October 27, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $27,176,000K ÷ $5,354,000K
= 5.08
The receivables turnover for Applied Materials Inc has varied over the past five years, ranging from 3.92 to 5.43. A higher receivables turnover indicates that the company is collecting its accounts receivable more frequently within a given period, which generally reflects strong efficiency in managing its receivables.
In this case, we observe a fluctuating trend in receivables turnover over the years. In 2020, the company achieved a high turnover of 5.43, but then experienced a decline in 2021 to 4.12. However, in the subsequent years, there was an upward trend, reaching 4.71 in 2023 and 5.08 in 2024.
Overall, the trend indicates that Applied Materials Inc has been effectively managing its accounts receivable turnover, with the recent increase in turnover suggesting an improvement in the efficiency of collecting receivables. This could be a positive sign of the company's credit policies, collection efforts, and overall financial health.
Peer comparison
Oct 27, 2024