Applied Materials Inc (AMAT)
Receivables turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 26,311,000 | 26,274,000 | 26,319,000 | 26,414,000 | 26,027,000 | 25,590,000 | 24,905,000 | 24,569,000 | 23,924,000 | 22,880,000 | 21,547,000 | 19,794,000 | 18,202,000 | 17,202,000 | 16,268,000 | 15,435,000 | 15,017,000 | 14,608,000 | 14,613,000 | 15,213,000 |
| Receivables | US$ in thousands | 5,011,000 | 5,577,000 | 5,648,000 | 5,933,000 | 5,847,000 | 6,529,000 | 5,532,000 | — | 4,789,000 | 5,546,000 | — | — | 3,212,000 | 3,125,000 | 2,965,000 | 2,749,000 | 2,796,000 | 2,629,000 | 2,455,000 | 2,329,000 |
| Receivables turnover | 5.25 | 4.71 | 4.66 | 4.45 | 4.45 | 3.92 | 4.50 | — | 5.00 | 4.13 | — | — | 5.67 | 5.50 | 5.49 | 5.61 | 5.37 | 5.56 | 5.95 | 6.53 |
January 28, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $26,311,000K ÷ $5,011,000K
= 5.25
The receivables turnover ratio for Applied Materials Inc. has displayed a generally consistent trend over the past eight quarters, ranging from 4.25 to 5.64. This ratio measures how efficiently the company is able to collect payments from its customers.
In Q1 2024, the receivables turnover ratio increased to 5.64, indicating that Applied Materials Inc. collected its accounts receivable 5.64 times during the quarter. This represents an improvement in the company's ability to convert its accounts receivable into cash compared to the previous quarters.
In the preceding quarter (Q4 2023), the ratio was 5.13, showing a slight decrease from Q1 2024. However, this decrease was not significant, and the ratio remained relatively strong, suggesting effective management of accounts receivable.
Looking further back, the trend in receivables turnover ratios has been fairly stable, hovering around the 5.00 mark. This consistency implies that Applied Materials Inc. has been successful in maintaining a steady pace of collecting payments from its customers over the past two years.
Overall, the trend in the receivables turnover ratio for Applied Materials Inc. indicates that the company has been efficient in managing its accounts receivable and converting them into cash, which is a positive signal for its financial health and operational efficiency.
Peer comparison
Jan 28, 2024