Amgen Inc (AMGN)

Receivables turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	25,976,000	18,426,000	18,462,000	18,381,000	18,649,000	51,099,000	51,147,000	51,407,000	51,365,000	25,471,000	25,484,000	25,164,000	25,424,000	24,987,000	24,301,000	23,966,000	23,362,000	23,395,000	23,562,000	23,750,000
Receivables	US$ in thousands	7,942,000	6,145,000	5,830,000	5,736,000	6,392,000	5,326,000	5,327,000	5,077,000	5,839,000	4,765,000	4,479,000	4,423,000	5,324,000	4,094,000	5,366,000	5,009,000	4,652,000	3,606,000	3,801,000	3,771,000
Receivables turnover		3.27	3.00	3.17	3.20	2.92	9.59	9.60	10.13	8.80	5.35	5.69	5.69	4.78	6.10	4.53	4.78	5.02	6.49	6.20	6.30

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,976,000K ÷ $7,942,000K
= 3.27

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher ratio indicates that the company is collecting its accounts receivable more quickly.

Analyzing AMGEN Inc.'s receivables turnover over the past eight quarters, we can see fluctuation in the ratio. In Q1 2022, the ratio was at its highest at 5.18, showing that the company was able to convert its accounts receivable into cash 5.18 times during that period. However, the ratio has been gradually declining since then, reaching 3.79 in Q4 2023.

The decreasing trend in the receivables turnover ratio may raise concerns about the company's ability to efficiently collect payments from its customers. AMGEN Inc. may need to review its credit policies, collection procedures, or customer base to improve its receivables turnover and enhance cash flow.

It is crucial for stakeholders to closely monitor the trend in the receivables turnover ratio over time to assess the company's liquidity and financial health. Further analysis and comparison with industry benchmarks can provide additional insights into AMGEN Inc.'s receivables management effectiveness.