Embecta Corp (EMBC)

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
Revenue (ttm) US$ in thousands 1,116,800 1,115,200 1,110,600 1,115,600 1,108,100 1,123,300
Receivables US$ in thousands 206,400 159,100 190,100 152,700 143,300 133,100 119,200 15,200 118,300
Receivables turnover 5.41 7.01 5.84 7.31 7.73 8.44

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,116,800K ÷ $206,400K
= 5.41

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher ratio indicates that the company is collecting its outstanding receivables more quickly.

Analyzing the data provided for Embecta Corp, we observe fluctuations in the receivables turnover ratio over the past few quarters. In general, a higher receivables turnover ratio is preferred as it signifies a more efficient collection process.

Looking at the trend, we see that the receivables turnover ratio has been declining from a peak of 8.44 in the third quarter of 2022 to 5.41 in the most recent quarter, December 31, 2023. This decline may indicate that the company is taking longer to collect its accounts receivable, which could potentially impact cash flow and liquidity.

It is essential for Embecta Corp to closely monitor and manage its accounts receivable collection process to ensure optimal cash flow and financial health. Further analysis of the reasons behind the decreasing trend in receivables turnover is warranted to address any underlying issues and improve overall efficiency in collections.


Peer comparison

Dec 31, 2023