Amphastar P (AMPH)

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	644,395	601,313	540,886	518,641	498,987	484,851	476,920	455,116	437,768	412,802	384,035	368,178	349,846	337,308	334,014	327,255	322,357	328,664	324,070	316,063
Receivables	US$ in thousands	114,943	118,990	104,715	100,638	88,804	77,099	80,810	73,166	78,804	78,090	67,893	77,938	66,005	52,382	49,862	57,784	45,376	45,255	48,823	54,930
Receivables turnover		5.61	5.05	5.17	5.15	5.62	6.29	5.90	6.22	5.56	5.29	5.66	4.72	5.30	6.44	6.70	5.66	7.10	7.26	6.64	5.75

December 31, 2023 calculation

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

The receivables turnover for Amphastar Pharmaceuticals Inc has fluctuated over the past eight quarters, ranging from a low of 5.05 in Q3 2023 to a high of 6.29 in Q3 2022. The overall trend shows a slight decrease in receivables turnover from Q3 2022 to Q3 2023.

Receivables turnover measures how efficiently the company is collecting on its credit sales, with a higher ratio indicating faster collection. Based on the data provided, Amphastar Pharmaceuticals Inc has demonstrated a relatively consistent ability to convert its accounts receivable into cash over the past two years, averaging around 5.65 times per year. This indicates that, on average, the company collects its outstanding receivables approximately every 65 days, which is a relatively healthy turnover rate for the industry.

A decrease in receivables turnover could potentially signal that the company is extending more lenient credit terms to customers, which may increase the risk of bad debts or indicate potential liquidity issues. Conversely, an increase in receivables turnover could suggest stricter credit policies or improved collection efforts, thereby enhancing the company's cash flow and overall financial health.

Overall, while the slight fluctuations in receivables turnover should be monitored, the company's consistent ability to efficiently collect on its credit sales is a positive indicator of its financial management practices.