FormFactor Inc (FORM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 733,352 | 744,811 | 767,046 | 693,269 | 586,655 |
| Receivables | US$ in thousands | 102,957 | 88,143 | 115,541 | 107,603 | 97,868 |
| Receivables turnover | 7.12 | 8.45 | 6.64 | 6.44 | 5.99 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $733,352K ÷ $102,957K
= 7.12
FormFactor Inc's receivables turnover ratio has exhibited fluctuations over the past five years. The receivables turnover ratio measures how many times a company collects payments from its customers within a given period. A higher ratio indicates that the company is efficient in collecting outstanding receivables.
In 2023, the receivables turnover ratio decreased to 7.12 from 8.45 in 2022, signaling a slight decrease in the company's ability to collect receivables promptly. However, the ratio remains relatively high, indicating that FormFactor Inc is still efficiently managing its receivables and collecting payments from customers.
Comparing to 2021 and 2020, where the ratios were 6.64 and 6.44, respectively, we can observe an improvement in the collection efficiency in recent years. This suggests that FormFactor Inc has been enhancing its collection processes and reducing the time it takes to convert receivables into cash.
Overall, FormFactor Inc's receivables turnover has shown positive trends, with the company consistently maintaining a healthy turnover ratio above 5.99 since 2019. This indicates that FormFactor Inc has been effectively managing its accounts receivable and is proficient in converting credit sales into cash.
Peer comparison
Dec 31, 2023