Digi International Inc (DGII)

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	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	254,203	254,361	255,467
Receivables	US$ in thousands	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	56,417	44,721	53,493
Receivables turnover		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	4.51	5.69	4.78

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $441,632K ÷ $61,441K
= 7.19

The receivables turnover ratio represents how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more quickly.

Digi International, Inc.'s receivables turnover has fluctuated over the past eight quarters, ranging from a low of 5.00 in Q2 2022 to a high of 8.64 in Q3 2023. The trend generally shows an improvement in the company's ability to collect payments from customers, as the ratio has generally increased over this period.

The most recent value of 7.19 in Q1 2024 indicates that the company was able to collect payments from its customers approximately 7.19 times during the quarter. This suggests a moderate efficiency in managing its accounts receivable.

Overall, a rising trend in receivables turnover is positive, as it indicates that the company is improving its collection process and may be managing its credit risk well. However, it is also important to consider industry benchmarks and compare Digi International's ratios with its competitors to get a better sense of its performance in managing receivables.