Garmin Ltd (GRMN)

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	5,246,720	5,096,320	4,940,900	4,827,700	4,850,560	4,890,830	4,957,220	5,058,410	4,952,040	4,911,850	4,854,200	4,399,994	4,178,615	3,929,445	3,728,516	3,823,804	3,748,274	3,578,152	3,462,914	3,399,351
Receivables	US$ in thousands	815,243	721,137	716,802	—	656,847	641,072	698,859	599,733	843,445	639,345	737,268	558,192	849,469	658,000	523,901	500,242	706,763	558,299	583,913	453,069
Receivables turnover		6.44	7.07	6.89	—	7.38	7.63	7.09	8.43	5.87	7.68	6.58	7.88	4.92	5.97	7.12	7.64	5.30	6.41	5.93	7.50

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,246,720K ÷ $815,243K
= 6.44

Receivables turnover is a financial ratio that measures how efficiently a company is able to collect its accounts receivable during a specific period. It is calculated by dividing the net credit sales by the average accounts receivable for the period.

Analyzing Garmin Ltd's receivables turnover over the past few quarters, we can see a fluctuating trend. The receivables turnover ratio has ranged from as low as 4.92 to as high as 8.43. A higher receivables turnover indicates that the company is collecting its receivables more quickly, which is generally a positive sign of efficient management of credit sales and collection processes.

In the recent quarters, Garmin Ltd's receivables turnover has generally been in the range of 6 to 8 times, which suggests that the company is collecting its accounts receivable at a moderate pace. However, the fluctuations in the ratio indicate that there may be variations in the timing of collections or the credit policies of the company.

It is essential for Garmin Ltd to closely monitor its receivables turnover and strive to maintain a balance between timely collection of receivables and maintaining good customer relationships. By analyzing the trend of receivables turnover over time, the company can identify any potential issues in collections and take appropriate measures to improve efficiency in accounts receivable management.