Boston Scientific Corp (BSX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,975,000 | 12,190,000 | 11,625,000 | 9,552,000 | 10,348,000 |
| Receivables | US$ in thousands | 2,228,000 | 1,970,000 | 1,778,000 | 1,531,000 | 1,933,000 |
| Receivables turnover | 6.27 | 6.19 | 6.54 | 6.24 | 5.35 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $13,975,000K ÷ $2,228,000K
= 6.27
The receivables turnover of Boston Scientific Corp. has shown a relatively stable trend over the past five years, ranging from 5.87 in 2019 to 6.69 in 2021. The ratio measures how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
In 2023, the receivables turnover slightly decreased to 6.39, compared to the previous year's 6.44. While this slight decline may suggest a slightly slower collection of receivables, the ratio remains relatively high, indicating that Boston Scientific is efficiently managing its accounts receivable and collecting funds from customers in a timely manner.
Overall, the consistent and relatively high receivables turnover ratios reflect positively on Boston Scientific's ability to efficiently manage its accounts receivable and convert credit sales into cash, which is essential for maintaining healthy cash flow and operational efficiency.
Peer comparison
Dec 31, 2023