Hims Hers Health Inc (HIMS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 872,000 | 526,916 | 271,878 | 148,757 | 82,558 |
| Receivables | US$ in thousands | 6,700 | 3,900 | 4,100 | 1,100 | — |
| Receivables turnover | 130.15 | 135.11 | 66.31 | 135.23 | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $872,000K ÷ $6,700K
= 130.15
The receivables turnover for Hims Hers Health Inc has fluctuated over the past five years. In 2023, the receivables turnover ratio was 130.15, indicating that the company collected its accounts receivable approximately 130 times during the year. This represents a slight decrease from the previous year's ratio of 135.11.
The significant increase in receivables turnover from 2021 to 2022 suggests that the company improved its efficiency in collecting outstanding customer payments. However, the sharp decline in 2021 compared to 2022 and the subsequent rebound in 2023 raises some concerns about the company's credit policies or the quality of its receivables.
Overall, monitoring the trend of receivables turnover ratios can provide insights into the effectiveness of Hims Hers Health Inc's credit and collection processes, as well as its overall financial health and liquidity.