Deluxe Corporation (DLX)

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	2,192,259	2,218,899	2,236,093	2,227,360	2,238,010	2,244,581	2,221,684	2,136,947	2,022,196	1,906,113	1,813,433	1,745,622	1,790,781	1,858,360	1,912,492	1,996,073	2,008,715	2,011,321	2,010,918	2,005,176
Receivables	US$ in thousands	235,665	262,084	268,119	277,222	251,480	248,084	240,297	235,603	246,684	205,844	205,974	160,546	185,286	138,349	140,285	158,681	163,421	142,845	152,784	156,840
Receivables turnover		9.30	8.47	8.34	8.03	8.90	9.05	9.25	9.07	8.20	9.26	8.80	10.87	9.66	13.43	13.63	12.58	12.29	14.08	13.16	12.78

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,192,259K ÷ $235,665K
= 9.30

Deluxe Corp.'s receivables turnover ratio has shown variability over the past eight quarters, ranging from a low of 8.64 in Q1 2023 to a high of 10.10 in Q4 2023. The average turnover ratio for this period is approximately 9.39. Generally, a higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently, turning them into cash quicker. Conversely, a lower ratio may suggest potential issues with collecting payments from customers in a timely manner.

The decreasing trend observed from Q1 2023 to Q4 2023 could be a concern as it may indicate a lengthening of the collection period for receivables. Further investigation into the company's credit policies, customer payment behaviors, and potential changes in the sales mix may be warranted to understand the underlying reasons for this trend.

Overall, while Deluxe Corp.'s receivables turnover ratio has shown fluctuations, it is important to monitor this ratio closely to ensure efficient management of accounts receivable and timely collection of payments.