Bio-Rad Laboratories Inc (BIO)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,298,670	5,562,940	5,851,740	5,058,790	4,601,000
Receivables	US$ in thousands	500,917	506,245	425,737	420,824	392,672
Receivables turnover		10.58	10.99	13.74	12.02	11.72

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,298,670K ÷ $500,917K
= 10.58

The receivables turnover ratio for Bio-Rad Laboratories Inc. has exhibited some fluctuations over the past five years. The company's ability to convert its accounts receivable into cash has been relatively consistent, with ratios ranging from 5.46 to 6.90. Generally, a higher receivables turnover ratio indicates that the company is efficient in collecting payments from its customers, while a lower ratio may suggest potential issues with credit policies or collection efforts.

In 2023, the receivables turnover decreased slightly to 5.46 from 5.67 in 2022, signaling a potential slowdown in the collection of accounts receivable. Despite this decrease, the company's ratio remains within a reasonable range compared to previous years, indicating a solid performance in managing its receivables. Further analysis of the company's credit and collection policies may provide insights into the factors influencing these fluctuations and help optimize its receivables management efficiency.