IPG Photonics Corporation (IPGP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,287,440	1,429,550	1,460,860	1,200,720	1,314,580
Receivables	US$ in thousands	245,091	252,281	299,111	334,214	277,352
Receivables turnover		5.25	5.67	4.88	3.59	4.74

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,287,440K ÷ $245,091K
= 5.25

The receivables turnover ratio for IPG Photonics Corp has fluctuated over the past five years. The ratio indicates how efficiently the company collects outstanding accounts receivable during a specific period.

In 2023, the company's receivables turnover ratio was 5.88, showing a decrease from the previous year's ratio of 6.76. This suggests that, on average, IPG Photonics converted its accounts receivable into cash approximately 5.88 times during the year. While a higher ratio is generally preferred as it indicates a quicker collection of receivables, the trend of a slight decrease over the last year might merit further investigation.

Comparing it with 2021 and 2020, the receivables turnover ratio has shown improvement over these years, indicating that the company has become more efficient in collecting its receivables. However, the ratio was lower in 2020 compared to 2021, suggesting a potential issue with collections efficiency that year.

Overall, monitoring the receivables turnover ratio can provide insights into the company's effectiveness in managing its accounts receivable and cash flow. It is essential to continue analyzing trends in this ratio to assess the company's financial health and operational efficiency.