Hologic Inc (HOLX)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,030,300 | 4,030,400 | 4,862,800 | 5,632,300 | 3,776,400 |
| Receivables | US$ in thousands | 600,400 | 625,600 | 638,100 | 942,700 | 1,028,900 |
| Receivables turnover | 6.71 | 6.44 | 7.62 | 5.97 | 3.67 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,030,300K ÷ $600,400K
= 6.71
Hologic Inc's receivables turnover ratio has been trending upwards over the past five years, indicating an improvement in the efficiency of its accounts receivable management. The ratio increased from 3.67 in 2020 to 6.71 in 2024, suggesting that the company is collecting its accounts receivable more frequently within each year. This improvement signifies that Hologic Inc has been more effective in converting its credit sales into cash, potentially reducing its risk of bad debts and improving its cash flow cycle. Overall, the upward trend in receivables turnover reflects positively on the company's liquidity and operational efficiency in managing its credit sales.
Peer comparison
Sep 30, 2024