Edwards Lifesciences Corp (EW)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,997,700 | 5,362,000 | 5,219,100 | 4,382,800 | 4,333,200 |
| Receivables | US$ in thousands | 775,100 | 643,000 | 582,200 | 514,600 | 543,600 |
| Receivables turnover | 7.74 | 8.34 | 8.96 | 8.52 | 7.97 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,997,700K ÷ $775,100K
= 7.74
The receivables turnover ratio of Edwards Lifesciences Corp has exhibited a fluctuating trend over the past five years. The ratio decreased from 7.26 in 2019 to 7.28 in 2020 before further declining to 7.18 in 2023. This trend suggests that the company may be taking longer to collect payments from its customers in recent years.
However, it is important to note that the receivables turnover ratios for the years 2021 and 2022 were relatively higher at 7.87 and 7.70 respectively, indicating a more efficient collection of receivables during those periods.
Overall, while the receivables turnover ratio has experienced some variability, the company's ability to efficiently convert its accounts receivable into cash remains relatively solid over the period analyzed. Further investigation into the underlying reasons for the fluctuations in the ratio could provide insights into the effectiveness of the company's credit and collection policies.
Peer comparison
Dec 31, 2023