Concentrix Corporation (CNXC)

Receivables turnover

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021
Revenue (ttm)	US$ in thousands	7,881,050	7,114,700	6,524,660	6,471,430	6,424,820	6,324,470	6,150,360	5,968,010	5,769,790	5,587,020
Receivables	US$ in thousands	1,927,640	1,888,890	1,379,440	1,394,010	1,381,610	1,390,470	1,355,060	1,311,720	1,324,740	1,207,950	1,131,420	1,089,390	1,129,010
Receivables turnover		4.09	3.77	4.73	4.64	4.65	4.55	4.54	4.55	4.36	4.63

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,881,050K ÷ $1,927,640K
= 4.09

Concentrix Corporation's receivables turnover ratio has been relatively stable over the past year, ranging from 3.77 to 4.73. This ratio indicates how efficiently the company collects cash from its customers and converts credit sales into cash.

A higher receivables turnover ratio typically indicates that the company is collecting its accounts receivable more quickly, which is a positive sign as it implies strong working capital management. On the other hand, a lower ratio could suggest potential issues with collections or credit policies.

Concentrix's average receivables turnover ratio for the period analyzed is approximately 4.47, which suggests that, on average, the company collects its outstanding receivables about 4.47 times a year. It is important to compare this ratio with industry benchmarks to determine how effectively Concentrix is managing its accounts receivable compared to its peers.

Overall, while the data indicates that Concentrix has been able to efficiently manage its receivables over the period, further analysis and comparison with industry standards would provide a more comprehensive understanding of the company's performance in this aspect.