Globus Medical (GMED)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,568,480 | 1,022,840 | 958,102 | 789,042 | 785,368 |
| Receivables | US$ in thousands | 504,870 | 217,308 | 165,651 | 148,100 | 162,424 |
| Receivables turnover | 3.11 | 4.71 | 5.78 | 5.33 | 4.84 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,568,480K ÷ $504,870K
= 3.11
The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers. A higher turnover ratio indicates a quicker collection of receivables, reflecting strong liquidity and effective credit policies.
Globus Medical Inc's receivables turnover has fluctuated over the past five years, as follows:
- In 2023, the receivables turnover was 3.12, indicating that the company collected its outstanding receivables approximately 3.12 times during the year.
- In 2022, the ratio improved to 4.80, suggesting a more efficient collection of receivables compared to 2023.
- In 2021, the ratio further increased to 5.83, reflecting an even better performance in collecting receivables.
- In 2020 and 2019, the ratios were 5.57 and 5.09 respectively, demonstrating consistent efficiency in collecting receivables over these years.
Overall, the trend shows some variability in the receivables turnover ratio, with a general improvement from 2023 towards 2021, indicating better management of receivables. However, it is advisable to monitor this ratio closely to ensure efficient collection practices are being maintained.
Peer comparison
Dec 31, 2023