Godaddy Inc (GDDY)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,111,400	3,961,000	3,694,000	3,228,400	2,884,200
Receivables	US$ in thousands	76,600	60,100	63,600	41,800	30,200
Receivables turnover		53.67	65.91	58.08	77.23	95.50

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,111,400K ÷ $76,600K
= 53.67

The receivables turnover ratio of Godaddy Inc has shown fluctuating trends over the past five years. In 2019, the company had a relatively high receivables turnover ratio of 98.94, indicating that it was collecting its accounts receivable almost 99 times throughout the year. This high turnover implies effective management of receivables and a quick conversion of credit sales into cash.

In the subsequent years, the receivables turnover ratio decreased significantly to 79.35 in 2020, 60.00 in 2021, and further to 68.07 in 2022. These reductions suggest that the company may be experiencing challenges in collecting its receivables efficiently or extending longer credit terms to customers.

However, there was a notable improvement in 2023, with the receivables turnover ratio increasing to 55.54. While this indicates that the company was able to collect its receivables more frequently compared to the previous year, it still lags behind the high turnover ratio achieved in 2019.

Overall, a declining trend in receivables turnover may signal potential liquidity issues or a slowdown in cash flow generation. It would be essential for Godaddy Inc to closely monitor its accounts receivable management and collection practices to ensure efficient cash conversion and improved financial performance in the future.