Globus Medical (GMED)

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	1,568,476	1,226,440	1,096,949	1,068,982	1,022,843	998,366	973,939	961,307	958,102	941,526	927,903	825,809	789,042	767,264	747,381	792,998	785,368	769,639	742,660	721,505
Receivables	US$ in thousands	504,870	495,852	241,942	225,825	217,308	208,504	198,536	169,831	165,651	176,744	185,163	162,675	148,100	151,365	136,074	138,683	162,424	157,576	156,954	140,609
Receivables turnover		3.11	2.47	4.53	4.73	4.71	4.79	4.91	5.66	5.78	5.33	5.01	5.08	5.33	5.07	5.49	5.72	4.84	4.88	4.73	5.13

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,568,476K ÷ $504,870K
= 3.11

Receivables turnover is a key financial ratio that measures how efficiently a company is able to collect cash from its credit sales. The receivables turnover ratio for Globus Medical Inc fluctuated over the past eight quarters, ranging from 2.48 to 5.78.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is generally a positive indicator of efficiency in managing its credit sales. In this case, the receivables turnover ratio was relatively stable in the range of 4.57 to 5.78 for the first six quarters, showing a consistent ability to collect receivables efficiently.

However, there was a noticeable decline in the last two quarters, with the receivables turnover ratio dropping to 3.12 and 2.48 respectively. This decline might indicate potential issues with collecting accounts receivable on time, which could impact the company's cash flow and liquidity.

Further analysis and monitoring of receivables turnover trends will be essential for assessing the effectiveness of Globus Medical Inc's credit and collection policies, as well as its overall financial health and operational efficiency.