CONMED Corporation (CNMD)
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 | 1,244,743 | 1,168,565 | 1,139,075 | 1,098,613 | 1,045,472 | 1,068,575 | 1,042,314 | 1,020,285 | 1,010,635 | 989,493 | 978,501 | 881,125 | 862,458 | 874,495 | 870,250 | 950,728 | 955,096 | 932,675 | 901,392 | 875,949 |
| Receivables | US$ in thousands | 242,279 | 230,196 | 229,256 | 213,182 | 191,345 | 197,287 | 202,119 | 183,248 | 183,882 | 165,433 | 168,966 | 163,954 | 177,152 | 166,593 | 143,412 | 166,504 | 189,097 | 173,282 | 179,039 | 172,195 |
| Receivables turnover | 5.14 | 5.08 | 4.97 | 5.15 | 5.46 | 5.42 | 5.16 | 5.57 | 5.50 | 5.98 | 5.79 | 5.37 | 4.87 | 5.25 | 6.07 | 5.71 | 5.05 | 5.38 | 5.03 | 5.09 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,244,743K ÷ $242,279K
= 5.14
The receivables turnover ratio for Conmed Corp. has been relatively stable over the past eight quarters, ranging from 4.97 to 5.57. This ratio represents the efficiency with which the company is able to collect its accounts receivable during a specific period, indicating how quickly the company can convert its credit sales into cash.
The average receivables turnover ratio for Conmed Corp. over this period is approximately 5.23. This suggests that, on average, the company collects its accounts receivable about 5.23 times per year, or roughly once every 70 days.
A higher receivables turnover ratio generally indicates that the company has a more efficient credit and collections process, which is favorable as it signifies a shorter cash conversion cycle. However, a consistently decreasing trend in the receivables turnover ratio could potentially indicate issues with credit policies, collection efforts, or the quality of customers.
Overall, Conmed Corp.'s receivables turnover ratio appears to be within a healthy range, showing consistent collections performance over the past two years. It would be beneficial for the company to continue monitoring this ratio to ensure efficient management of accounts receivable and cash flow.
Peer comparison
Dec 31, 2023