ICU Medical Inc (ICUI)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,259,130	2,280,000	1,316,310	1,271,000	1,266,210
Receivables	US$ in thousands	161,566	221,719	105,894	124,093	202,219
Receivables turnover		13.98	10.28	12.43	10.24	6.26

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,259,130K ÷ $161,566K
= 13.98

The receivables turnover ratio measures the efficiency of ICU Medical, Inc. in collecting payments from its customers. A higher turnover ratio indicates a more efficient collection process.

Analyzing the data provided, we see that ICU Medical's receivables turnover has generally been increasing over the past five years. In 2019, the ratio was 6.13, and it has since steadily risen to 13.75 in 2023. This suggests that the company has been improving its ability to collect payments from customers in a timely manner.

A higher receivables turnover ratio implies that ICU Medical is able to convert its accounts receivable into cash more quickly, which can be a positive sign of effective credit management and collection practices. This improvement can also indicate a strong customer base that pays promptly, contributing to the company's liquidity and working capital efficiency.

Overall, the increasing trend in ICU Medical's receivables turnover ratio indicates a positive development in their receivables management, reflecting effective credit policies and successful collection efforts.