Graham Holdings Co (GHC)

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	4,403,440	4,303,530	4,201,410	3,997,102	3,881,548	3,696,730	3,495,222	3,386,894	3,193,798	3,082,719	2,998,779	2,846,516	2,873,113	2,865,588	2,887,426	2,972,157	2,932,099	2,857,708	2,793,654	2,728,729
Receivables	US$ in thousands	503,020	515,339	442,992	482,061	542,935	531,461	489,057	509,509	622,326	566,507	513,623	510,782	548,890	491,677	467,490	541,041	606,056	592,384	523,224	506,344
Receivables turnover		8.75	8.35	9.48	8.29	7.15	6.96	7.15	6.65	5.13	5.44	5.84	5.57	5.23	5.83	6.18	5.49	4.84	4.82	5.34	5.39

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,403,440K ÷ $503,020K
= 8.75

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher turnover ratio indicates that the company is effectively managing its accounts receivable.

Looking at the data provided for Graham Holdings Co., we can see fluctuations in the receivables turnover ratio over the past eight quarters. The trend indicates some variability but generally shows an upward trajectory.

In Q4 2023, the receivables turnover ratio was 8.30, which increased from the previous quarter, Q3 2023, where it was 7.94. This suggests that the company improved its efficiency in collecting payments from customers during the most recent quarter.

The highest receivables turnover ratio in the dataset was observed in Q3 2023 at 8.96, indicating a peak in the company's efficiency in collecting receivables. On the other hand, the lowest ratio was seen in Q1 2022 at 6.36.

Overall, the upward trend in receivables turnover ratios for Graham Holdings Co. over the quarters signals improved effectiveness in managing accounts receivable and highlights the company's ability to collect payments from customers in a timely manner.

Additional analysis, in conjunction with other financial metrics and industry benchmarks, can provide a more comprehensive assessment of the company's financial health and performance.