Digi International Inc (DGII)

Receivables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	424,046	431,157	438,190	441,632	444,849	438,424	429,705	413,274	388,225	361,593	337,155	319,743	308,632	302,695	293,954	290,100	279,271	271,062	261,890	254,207
Receivables	US$ in thousands	69,640	71,190	71,983	61,441	55,997	50,715	49,678	54,445	50,450	61,793	67,424	49,359	43,738	41,276	44,108	52,500	59,227	53,876	78,491	81,097
Receivables turnover		6.09	6.06	6.09	7.19	7.94	8.64	8.65	7.59	7.70	5.85	5.00	6.48	7.06	7.33	6.66	5.53	4.72	5.03	3.34	3.13

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $424,046K ÷ $69,640K
= 6.09

Digi International Inc's receivables turnover ratio has fluctuated over the past few quarters, indicating varying levels of efficiency in collecting receivables. The trend shows a general improvement in receivables turnover from an average of around 5 times a year in 2019 to over 6 times a year in 2024. This suggests that the company has been able to collect its accounts receivable more frequently in recent periods.

However, there are some quarters where the receivables turnover ratio dropped below the average, which may raise concerns about the company's credit policies, collection procedures, or the credit quality of its customers during those periods. It is important for Digi International Inc to ensure that it maintains a healthy balance between efficient collections and maintaining good customer relationships.

Overall, the improving trend in receivables turnover indicates a positive direction in cash flow management for Digi International Inc, but it is essential for the company to closely monitor and manage its accounts receivable to sustain this positive trend in the future.