Edwards Lifesciences Corp (EW)

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	5,997,700	5,823,000	5,652,900	5,488,400	5,362,000	5,360,300	5,343,800	5,344,000	5,219,100	5,093,000	4,925,300	4,477,100	4,393,400	4,375,800	4,330,900	4,493,400	4,355,200	4,158,800	3,968,100	3,822,500
Receivables	US$ in thousands	775,100	739,800	754,400	717,700	643,000	618,100	636,400	636,300	582,200	600,600	640,500	586,600	514,600	549,700	-9,300	-9,000	543,600	-8,800	-8,800	-8,600
Receivables turnover		7.74	7.87	7.49	7.65	8.34	8.67	8.40	8.40	8.96	8.48	7.69	7.63	8.54	7.96	—	—	8.01	—	—	—

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,997,700K ÷ $775,100K
= 7.74

The analysis of Edwards Lifesciences Corp's receivables turnover over the last eight quarters reveals fluctuations in the efficiency of the company in collecting receivables from its customers. The receivables turnover ratio, which measures how many times a company collects its average accounts receivable balance during a period, ranged from 6.93 to 8.11.

The trend in receivables turnover shows a slight decline in recent quarters from a peak of 8.11 in Q3 2022 to a low of 6.93 in Q2 2023. This could indicate a lengthening in the collection period of accounts receivable, potentially tying up more of the company's working capital in outstanding receivables. The company should focus on improving its collections process to expedite cash inflows and enhance liquidity.

Overall, the average receivables turnover ratio of approximately 7.49 over the eight quarters suggests that Edwards Lifesciences Corp is efficiently managing its accounts receivable, but there may be room for improvement to speed up collections and optimize working capital management.