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.