Keysight Technologies Inc (KEYS)
Receivables turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,979,000 | 5,464,000 | 5,420,000 | 4,941,000 | 4,221,000 |
| Receivables | US$ in thousands | 1,032,000 | 983,000 | 954,000 | 765,000 | 659,000 |
| Receivables turnover | 4.82 | 5.56 | 5.68 | 6.46 | 6.41 |
October 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,979,000K ÷ $1,032,000K
= 4.82
The receivables turnover ratio measures the efficiency of a company in collecting cash from its customers. Keysight Technologies Inc's receivables turnover has shown a decreasing trend over the past five years, declining from 6.41 in 2020 to 4.82 in 2024.
A lower receivables turnover ratio may indicate that the company is taking longer to collect payments from its customers, which could lead to liquidity issues or potential bad debts. It is important for the company to closely monitor its accounts receivable management and collection processes to improve its efficiency in converting credit sales into cash.
Although a single ratio does not provide a complete picture, the downward trend in receivables turnover for Keysight Technologies Inc suggests the need for further analysis to understand the reasons behind the decline and to implement strategies to improve the collection process and overall financial health of the company.
Peer comparison
Oct 31, 2024