Blackbaud Inc (BLKB)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,068,830	1,029,700	912,853	913,219	900,423
Receivables	US$ in thousands	101,862	102,809	102,726	95,404	88,868
Receivables turnover		10.49	10.02	8.89	9.57	10.13

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,068,830K ÷ $101,862K
= 10.49

The receivables turnover for Blackbaud Inc has shown a fluctuating trend over the past five years, ranging from 8.95 in 2021 to 10.25 in 2023. This ratio indicates how efficiently the company is managing its accounts receivable by collecting outstanding payments from customers.

A higher turnover ratio typically suggests that the company is collecting its accounts receivable more quickly, which can be a positive sign of effective credit policies and strong customer relationships. However, a significantly high turnover ratio may also indicate overly aggressive collections practices that could potentially harm customer relationships.

On the other hand, a lower turnover ratio may suggest inefficiencies in collecting receivables, potentially leading to cash flow issues and liquidity challenges. The slight fluctuations in Blackbaud Inc's receivables turnover indicate some variability in the company's collection efficiency over the years.

It is important for investors and analysts to closely monitor receivables turnover trends to assess the company's ability to efficiently manage its accounts receivable, maintain healthy cash flow, and ultimately sustain its financial health.