Keysight Technologies Inc (KEYS)
Receivables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,464,000 | 5,420,000 | 4,941,000 | 4,221,000 | 4,303,000 |
| Receivables | US$ in thousands | 983,000 | 954,000 | 765,000 | 659,000 | 708,000 |
| Receivables turnover | 5.56 | 5.68 | 6.46 | 6.41 | 6.08 |
October 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,464,000K ÷ $983,000K
= 5.56
The receivables turnover for Keysight Technologies Inc has shown a relatively stable trend over the past five years. The receivables turnover ratio, which measures the efficiency of a company in collecting its accounts receivable, stood at 6.07 in October 31, 2023. This indicates that the company collected its outstanding receivables approximately 6.07 times during the year.
Comparing this to previous years, we note that the receivables turnover has remained within a relatively narrow range, fluctuating between 5.99 and 6.97. This implies a consistent performance in managing the collection of receivables over this period.
A higher turnover ratio signifies more efficient management of receivables, while a lower ratio suggests slower collection. Keysight Technologies Inc's consistent turnover ratio indicates effective management of its accounts receivable, reflecting a healthy collection process and potentially favorable credit terms with its customers. However, it may also indicate a conservative approach to extending credit.
Overall, the stability and relatively high level of receivables turnover over the past five years portray a positive picture of the company's ability to collect its outstanding receivables efficiently.
Peer comparison
Oct 31, 2023