Blackline Inc (BL)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	583,245	518,558	355,637	328,649	280,261
Receivables	US$ in thousands	171,608	150,858	125,130	111,270	103,662
Receivables turnover		3.40	3.44	2.84	2.95	2.70

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $583,245K ÷ $171,608K
= 3.40

The receivables turnover ratio for Blackline Inc has shown fluctuations over the past five years. In 2023, the company's receivables turnover ratio was 3.40, compared to 3.44 in 2022, indicating a slight decrease in the efficiency of collecting receivables. However, the ratio is still higher than in 2020 and 2019, suggesting an improvement in receivables management efficiency in recent years.

A higher receivables turnover ratio generally indicates that the company is able to collect its outstanding receivables more quickly, which is a positive sign of effective credit and collection policies. Conversely, a lower ratio may suggest potential issues with collecting receivables in a timely manner, leading to liquidity challenges.

It is essential for Blackline Inc to continuously monitor and analyze its receivables turnover ratio to ensure efficient management of its accounts receivable and maintain healthy cash flow levels. The company should consider implementing strategies to enhance its receivables collection processes and maintain a balance between extending credit to customers and ensuring timely payment collection.