Harmonic Inc (HLIT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 603,758 | 619,917 | 501,650 | 359,569 | 385,878 |
| Receivables | US$ in thousands | 141,531 | 108,427 | 88,529 | 66,727 | 95,843 |
| Receivables turnover | 4.27 | 5.72 | 5.67 | 5.39 | 4.03 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $603,758K ÷ $141,531K
= 4.27
The receivables turnover ratio measures how efficiently a company collects payments from its customers over a specific period. In the case of Harmonic, Inc., the trend in the receivables turnover ratio over the past five years demonstrates some fluctuation.
From 2019 to 2020, there was a slight decrease in the receivables turnover ratio from 4.55 to 4.30, indicating that the company took slightly longer to collect payments from its customers during that period. However, in the following years, there was a consistent improvement in the efficiency of receivables collection, with ratios of 5.72 in 2020, 5.73 in 2021, and 5.76 in 2022.
The significant increase in the receivables turnover ratio from 2020 to 2022 suggests that Harmonic, Inc. has been successful in enhancing its collections process and managing its accounts receivable more effectively. The ratio of 5.76 in 2022 indicates that the company turned over its accounts receivable approximately 5.76 times during that year, reflecting a quicker conversion of credit sales into cash.
Overall, the improving trend in Harmonic, Inc.'s receivables turnover ratio signifies enhanced efficiency in managing its receivables and collecting payments from customers. This trend is generally a positive indication of the company's liquidity and ability to maintain healthy cash flows.
Peer comparison
Dec 31, 2023