Amphastar P (AMPH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	644,395	498,987	437,768	349,846	322,357
Receivables	US$ in thousands	114,943	88,804	78,804	66,005	45,376
Receivables turnover		5.61	5.62	5.56	5.30	7.10

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $644,395K ÷ $114,943K
= 5.61

The receivables turnover ratio for Amphastar Pharmaceuticals Inc has been relatively stable over the past five years, ranging between 5.30 and 7.10 times. The ratio measures how efficiently the company is able to collect payments from its customers during a specific period. A higher turnover ratio indicates a more efficient collection process, as the company is able to convert its receivables into cash more quickly.

In this case, the fluctuation in the receivables turnover ratio within a narrow range suggests that Amphastar Pharmaceuticals has been managing its accounts receivable effectively. The company has maintained a consistent ability to collect its outstanding receivables over the years, which is a positive sign of its financial health and operational efficiency.

Overall, the stability and relatively high values of the receivables turnover ratio indicate that Amphastar Pharmaceuticals Inc has been successful in managing its credit and collection policies, resulting in a healthy cash conversion cycle and potentially lower bad debt risks.