IPG Photonics Corporation (IPGP)

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	1,287,439	1,322,085	1,369,690	1,406,742	1,429,547	1,460,475	1,490,619	1,485,254	1,460,860	1,433,023	1,372,314	1,297,067	1,200,724	1,170,721	1,181,418	1,248,776	1,314,581	1,338,004	1,365,212	1,415,056
Receivables	US$ in thousands	245,091	262,135	281,873	283,629	252,281	244,690	299,789	298,352	299,111	307,181	315,479	323,298	334,214	300,788	266,346	251,486	277,352	303,619	323,582	282,811
Receivables turnover		5.25	5.04	4.86	4.96	5.67	5.97	4.97	4.98	4.88	4.67	4.35	4.01	3.59	3.89	4.44	4.97	4.74	4.41	4.22	5.00

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,287,439K ÷ $245,091K
= 5.25

The receivables turnover ratio measures the efficiency of IPG Photonics Corp in collecting outstanding receivables from customers during a specific period. A higher receivables turnover ratio indicates a more efficient collection process.

Based on the provided data, the receivables turnover for IPG Photonics Corp has fluctuated over the past eight quarters. The ratio ranged from a low of 5.76 in Q3 2023 to a high of 7.48 in Q3 2022. It is noteworthy that the ratio has generally been decreasing over the quarters, which may indicate a potential slowdown in the collection of receivables.

The average receivables turnover for the last eight quarters is approximately 6.35 times. This suggests that on average, IPG Photonics Corp collects outstanding receivables approximately 6.35 times a year.

It is essential for IPG Photonics Corp to monitor and analyze its receivables turnover to ensure efficient cash flow management and timely collection of outstanding payments from customers. Any significant deviations from historical trends should be further investigated to address potential issues with collections or customer credit quality.