ICU Medical Inc (ICUI)

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	2,259,126	2,249,284	2,293,830	2,305,524	2,279,997	2,042,508	1,780,711	1,541,384	1,316,308	1,296,234	1,278,741	1,260,443	1,271,004	1,266,076	1,254,980	1,263,883	1,266,208	1,291,063	1,310,761	1,358,939
Receivables	US$ in thousands	161,566	161,797	162,225	139,459	221,719	212,845	216,124	202,897	105,894	116,043	120,782	120,365	124,093	164,538	197,775	198,158	202,219	210,449	230,294	238,069
Receivables turnover		13.98	13.90	14.14	16.53	10.28	9.60	8.24	7.60	12.43	11.17	10.59	10.47	10.24	7.69	6.35	6.38	6.26	6.13	5.69	5.71

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,259,126K ÷ $161,566K
= 13.98

The receivables turnover ratio for ICU Medical, Inc. has been consistently increasing over the past eight quarters, indicating a more efficient management of receivables. The latest value of 13.75 in Q4 2023 suggests that the company collected its outstanding receivables approximately 13.75 times during the quarter. This improvement is notable compared to the lower values observed in the earlier quarters, such as 7.45 in Q1 2022.

Higher receivables turnover ratios generally indicate that the company is collecting outstanding receivables more quickly, which can be a positive sign of effective credit management or aggressive collection efforts. The increasing trend also suggests that ICU Medical, Inc. is becoming more efficient in converting its credit sales into cash, potentially improving its liquidity position and reducing the risk of bad debts.

However, it is essential to consider industry benchmarks and peer comparisons to gain a more holistic view of ICU Medical, Inc.'s performance in managing its receivables. Additionally, further analysis of the company's credit policies, collection processes, and overall financial health would provide a more comprehensive understanding of its receivables management efficiency.