ANI Pharmaceuticals Inc (ANIP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	454,334	287,962	202,731	198,984	206,547
Receivables	US$ in thousands	162,079	165,438	128,526	95,793	72,129
Receivables turnover		2.80	1.74	1.58	2.08	2.86

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $454,334K ÷ $162,079K
= 2.80

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is favorable as it reflects strong cash flow management.

Analyzing ANI Pharmaceuticals Inc's receivables turnover over the past five years reveals fluctuations in the company's ability to collect its accounts receivable efficiently:

1. Dec 31, 2023: The receivables turnover ratio increased to 3.00, indicating that ANI Pharmaceuticals Inc collected its receivables more rapidly compared to the previous year. This could suggest the company implemented better credit control policies or had a more favorable payment collection cycle.

2. Dec 31, 2022: The receivables turnover ratio was 1.91, showing a decline from the previous year. This could indicate potential issues with collecting outstanding receivables, leading to slower cash inflow and potentially impacting the company's liquidity position.

3. Dec 31, 2021: The ratio further decreased to 1.68, suggesting a worsening collection efficiency compared to the prior year. A declining receivables turnover ratio may signal issues with credit management or customer payment delays.

4. Dec 31, 2020: The ratio improved to 2.18, indicating a better collection of accounts receivable compared to the previous year. This could be a positive sign of improved cash flow management or more effective credit policies.

5. Dec 31, 2019: ANI Pharmaceuticals Inc had a receivables turnover ratio of 2.86, showing efficient collection of receivables. This indicates that the company was successful in collecting outstanding payments promptly, leading to a healthy cash flow position.

In conclusion, ANI Pharmaceuticals Inc's receivables turnover has shown varying trends over the past five years, with fluctuations indicating changes in the company's ability to manage its accounts receivable efficiently. Monitoring this ratio can provide insights into the company's liquidity, credit policies, and overall financial health.