Deluxe Corporation (DLX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,192,260 | 2,238,010 | 2,022,200 | 1,790,780 | 2,008,720 |
| Receivables | US$ in thousands | 235,665 | 251,480 | 246,684 | 185,286 | 163,421 |
| Receivables turnover | 9.30 | 8.90 | 8.20 | 9.66 | 12.29 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,192,260K ÷ $235,665K
= 9.30
Deluxe Corp.'s receivables turnover ratio has shown a fluctuating trend over the past five years. The ratio was 10.10 in 2023, an increase from 9.12 in 2022 but lower than the 10.24 reported in 2019. This indicates that in 2023, Deluxe Corp. collected its accounts receivable approximately 10.10 times during the year, which reflects the efficiency of the company in collecting outstanding payments from customers.
A higher receivables turnover ratio typically suggests a more efficient credit and collection process, where customers are paying their bills more promptly. However, it's important to consider the industry norms and company-specific circumstances when analyzing this ratio. Overall, the improving trend from 2022 to 2023 is a positive indicator of Deluxe Corp.'s effectiveness in managing its accounts receivable.