Cadence Design Systems Inc (CDNS)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,049,355	3,878,358	3,763,680	3,650,044	3,535,272	3,412,551	3,263,458	3,133,398	2,967,551	2,957,138	2,871,721	2,780,256	2,661,765	2,493,526	2,407,607	2,350,546	2,308,577	2,285,432	2,237,360	2,173,639
Receivables	US$ in thousands	489,224	426,505	440,915	488,237	486,710	391,181	391,738	361,789	337,596	327,191	389,986	388,666	338,487	300,413	312,758	284,093	304,546	274,914	237,609	264,767
Receivables turnover		8.28	9.09	8.54	7.48	7.26	8.72	8.33	8.66	8.79	9.04	7.36	7.15	7.86	8.30	7.70	8.27	7.58	8.31	9.42	8.21

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,049,355K ÷ $489,224K
= 8.28

The receivables turnover for Cadence Design Systems, Inc. fluctuated over the past eight quarters, ranging from a low of 7.32 in Q4 2022 to a high of 9.19 in Q3 2023. This ratio measures how efficiently the company is collecting payments from its customers during the period. A higher turnover ratio indicates that the company is collecting payments more quickly, which is generally favorable as it reflects strong liquidity and efficient management of accounts receivable.

In general, Cadence Design Systems, Inc. has maintained a healthy receivables turnover ratio above 7.5 over the past two years, with an average of approximately 8.46. The higher turnovers in Q3 2023 and Q2 2022 suggest that the company was particularly effective in collecting payments during those periods. However, the lower turnover in Q4 2022 may indicate a potential delay in receivables collection during that quarter.

Overall, the trend of the receivables turnover ratio for Cadence Design Systems, Inc. indicates a consistent ability to manage and collect payments from customers efficiently, with some fluctuations observed over the quarters. Monitoring this ratio in conjunction with other financial metrics can provide further insights into the company's financial health and operational efficiency.