Harmonic Inc (HLIT)
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 | 601,654 | 597,493 | 625,363 | 626,252 | 617,168 | 611,864 | 581,045 | 535,811 | 500,824 | 470,444 | 438,894 | 398,174 | 364,172 | 361,941 | 376,886 | 388,697 | 388,955 | 380,432 | 371,146 | 385,534 |
| Receivables | US$ in thousands | 141,531 | 110,345 | 119,203 | 88,135 | 108,427 | 105,581 | — | — | 88,529 | — | — | — | 66,727 | 87,523 | 74,781 | 100,721 | 95,843 | 108,077 | 70,571 | 66,089 |
| Receivables turnover | 4.25 | 5.41 | 5.25 | 7.11 | 5.69 | 5.80 | — | — | 5.66 | — | — | — | 5.46 | 4.14 | 5.04 | 3.86 | 4.06 | 3.52 | 5.26 | 5.83 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $601,654K ÷ $141,531K
= 4.25
Analyzing Harmonic, Inc.'s receivables turnover over the past eight quarters reveals fluctuations in the efficiency of the company in collecting its accounts receivables. The receivables turnover ratio, which indicates how many times a company collects its average accounts receivable balance during a period, ranged from a low of 4.30 in Q4 2023 to a high of 7.21 in Q1 2023.
The decreasing trend in the receivables turnover from Q1 2023 to Q4 2023 may suggest a potential issue with the company's collection process or credit policies. A lower turnover ratio could indicate that Harmonic, Inc. is taking longer to collect payments from its customers, which may impact its working capital and liquidity.
Conversely, the higher turnover ratios seen in the first three quarters of 2023, especially the peak at 7.21 in Q1 2023, signal improved efficiency in collecting receivables during those periods. This could indicate effective credit management practices and timely collection efforts by the company.
Overall, Harmonic, Inc. should monitor its receivables turnover closely to ensure that it maintains a balance between extending credit to customers and efficiently collecting outstanding balances to support its financial health and operational stability.
Peer comparison
Dec 31, 2023