Cirrus Logic Inc (CRUS)

Receivables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,788,060	1,896,530	1,781,390	1,369,220	1,280,980
Receivables	US$ in thousands	162,478	150,473	240,264	108,712	153,998
Receivables turnover		11.00	12.60	7.41	12.59	8.32

March 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,788,060K ÷ $162,478K
= 11.00

The receivables turnover ratio measures how efficiently a company is able to collect cash from its credit sales. It indicates the number of times a company converts its accounts receivable into cash during a specific period.
Cirrus Logic Inc's receivables turnover has fluctuated over the past five years. In the most recent fiscal year (ending March 31, 2024), the receivables turnover ratio was 11.00, demonstrating that the company collected its accounts receivable approximately 11 times during the year. This represents a decrease from the previous year's ratio of 12.60.
Comparing the 2024 ratio to earlier years, we observe significant variability in the efficiency of Cirrus Logic Inc in collecting its receivables. The ratio was 7.41 in 2022, 12.59 in 2021, and 8.32 in 2020, showing a mixed performance in managing its accounts receivable over this period.
Overall, the recent decrease in receivables turnover may suggest potential challenges in the company's collection efforts compared to the prior year, signaling a potential need for improvement in managing accounts receivable and enhancing cash flow efficiency.