Box Inc (BOX)

Receivables turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	1,040,660	994,397	877,506	773,486	702,138
Receivables	US$ in thousands	281,487	264,515	256,312	228,309	209,434
Receivables turnover		3.70	3.76	3.42	3.39	3.35

January 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,040,660K ÷ $281,487K
= 3.70

The receivables turnover of Box Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year (ending Jan 31, 2024), the receivables turnover ratio was 3.70, indicating that the company collected its accounts receivable approximately 3.70 times during the year. This represents a slight decrease from the previous year's ratio of 3.76.

Despite the minor decrease in 2024, the receivables turnover ratio has generally been relatively stable over the period analyzed, ranging from 3.35 to 3.76. This suggests that Box Inc has been efficient in collecting its receivables over the years.

A higher receivables turnover ratio is typically preferred as it indicates that the company is collecting its outstanding receivables more quickly. However, it is essential to consider the industry norms and specific business dynamics when evaluating this ratio.

Overall, Box Inc's receivables turnover ratio reflects a consistent performance in managing its accounts receivable efficiently, although there was a slight dip in the most recent year. It is important for the company to monitor this ratio regularly to ensure timely collection of receivables and maintain healthy cash flow.