Embecta Corp (EMBC)

Receivables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	1,117,100	1,113,300	1,126,900	1,116,800	1,115,200	1,110,600	1,115,600	1,108,100	1,123,300
Receivables	US$ in thousands	246,800	243,400	167,000	206,400	159,100	190,100	152,700	143,300	133,100	119,200	15,200	118,300
Receivables turnover		4.53	4.57	6.75	5.41	7.01	5.84	7.31	7.73	8.44

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,117,100K ÷ $246,800K
= 4.53

Embecta Corp's receivables turnover has shown some fluctuations over the past several quarters. The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales. A higher turnover ratio indicates that the company is collecting receivables more quickly.

The receivables turnover ratio for Embecta Corp ranged from 4.53 to 8.44 over the last few quarters. In general, a higher turnover ratio is favorable as it suggests that the company is effectively managing its accounts receivable and converting them into cash.

The trend for Embecta Corp's receivables turnover has been somewhat inconsistent. The ratio increased from 4.53 in September 2023 to 7.31 in March 2023 before peaking at 8.44 in September 2022. However, it then decreased to 4.57 in June 2024. This fluctuation may indicate some variability in the company's collection practices or changes in its customer base.

Overall, while the company's receivables turnover ratio has shown fluctuations, it is generally within a reasonable range. Management should continue to monitor this ratio to ensure that the company is efficiently collecting on its credit sales and managing its accounts receivable effectively.