Genpact Limited (G)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,476,890 | 4,371,170 | 4,022,210 | 3,709,380 | 3,520,540 |
| Receivables | US$ in thousands | 1,121,360 | 998,054 | 890,539 | 883,656 | 918,464 |
| Receivables turnover | 3.99 | 4.38 | 4.52 | 4.20 | 3.83 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,476,890K ÷ $1,121,360K
= 3.99
The receivables turnover ratio for Genpact Ltd has exhibited a fluctuating trend over the past five years. It decreased from 3.85 in 2019 to 4.21 in 2020, before increasing to 4.53 in 2021. Subsequently, there was a decline in the ratio to 4.39 in 2022 and further to 4.01 in 2023. The ratio measures how effectively the company is collecting its accounts receivable during each period. A higher turnover ratio indicates that the company is more efficient in collecting outstanding receivables. In the case of Genpact Ltd, the downward trend in the receivables turnover ratio in recent years may suggest that the company is taking longer to collect its outstanding receivables, which could potentially impact its liquidity and cash flow. Further analysis of the company's credit policies, collection procedures, and industry benchmarks would be valuable in understanding the reasons behind the fluctuations in the receivables turnover ratio.
Peer comparison
Dec 31, 2023