Digi International Inc (DGII)

Receivables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	444,849	388,225	308,632	279,271	254,203
Receivables	US$ in thousands	55,997	50,450	43,738	59,227	56,417
Receivables turnover		7.94	7.70	7.06	4.72	4.51

September 30, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $444,849K ÷ $55,997K
= 7.94

The trend in Digi International, Inc.'s receivables turnover ratio indicates an improvement in the efficiency of the company's receivables management. The ratio has been increasing steadily over the past five years, reaching 7.94 in 2023 from 4.51 in 2019. This suggests that the company is collecting its accounts receivable more frequently within the year, which may indicate effective credit policies, prompt invoicing, or a proactive approach to collections. A higher receivables turnover ratio generally reflects a more effective use of resources and faster conversion of receivables into cash. This trend is a positive indicator of the company's liquidity and overall operational efficiency.