Cadence Design Systems Inc (CDNS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,048,310 | 3,534,360 | 2,967,550 | 2,661,760 | 2,308,580 |
| Receivables | US$ in thousands | 489,224 | 486,710 | 337,596 | 338,487 | 304,546 |
| Receivables turnover | 8.27 | 7.26 | 8.79 | 7.86 | 7.58 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,048,310K ÷ $489,224K
= 8.27
Cadence Design Systems, Inc.'s receivables turnover has been fluctuating over the past five years. The company's efficiency in collecting its accounts receivable improved from 2019 to 2022, with a notable peak in turnover in 2022 at 8.85. However, in 2023, the receivables turnover decreased slightly to 8.36. This indicates that, on average, the company collected its accounts receivable every 8.36 times during the year.
A higher receivables turnover ratio suggests that the company is collecting its accounts receivable more frequently, which is generally favorable as it indicates better liquidity and efficiency. On the other hand, a lower turnover ratio may indicate that the company is taking longer to collect its receivables, which can lead to cash flow challenges.
Overall, Cadence Design Systems, Inc.'s receivables turnover has shown some variability, but the trend has been relatively stable over the years, indicating that the company has been managing its accounts receivable effectively. Further analysis of the company's cash flow and collection policies may provide additional insights into its receivables management.
Peer comparison
Dec 31, 2023