Embecta Corp (EMBC)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,118,700 | 1,112,000 | 1,126,300 |
| Receivables | US$ in thousands | 246,800 | 159,100 | 133,100 |
| Receivables turnover | 4.53 | 6.99 | 8.46 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,118,700K ÷ $246,800K
= 4.53
The receivables turnover ratio for Embecta Corp has shown a declining trend over the past three years. In Sep 30, 2022, the ratio was at its highest at 8.46, indicating that the company was able to collect its accounts receivables 8.46 times during the year. However, in Sep 30, 2023, the ratio decreased to 6.99, and further dropped to 4.53 in Sep 30, 2024.
This declining trend suggests that Embecta Corp may be taking longer to collect its accounts receivables compared to previous years, which could potentially signal issues with collection efforts or credit policies. It is important for the company to closely monitor this ratio and take necessary steps to improve collections efficiency in order to maintain healthy cash flow and liquidity.
Peer comparison
Sep 30, 2024