Leidos Holdings Inc (LDOS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,438,000 | 14,396,000 | 13,737,000 | 12,297,000 | 11,094,000 |
| Receivables | US$ in thousands | 2,429,000 | 2,350,000 | 2,189,000 | 2,137,000 | 1,734,000 |
| Receivables turnover | 6.36 | 6.13 | 6.28 | 5.75 | 6.40 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,438,000K ÷ $2,429,000K
= 6.36
The receivables turnover ratio for Leidos Holdings Inc has been relatively stable over the past five years. It stood at 6.40 in 2019, decreased to 5.75 in 2020, and then exhibited a modest upward trend, reaching 6.36 by the end of 2023. This indicates that the company collected its accounts receivable approximately 6 times a year in 2019 and 2023.
A higher receivables turnover ratio suggests that the company is efficient in collecting payments from customers and converting credit sales into cash quickly. On the other hand, a declining or low turnover ratio may indicate issues with credit policies, collection procedures, or an increasing proportion of overdue accounts.
Overall, Leidos Holdings Inc's consistent receivables turnover ratio reflects effective management of its accounts receivable, ensuring timely cash inflows and potentially minimizing the risk of bad debts.
Peer comparison
Dec 31, 2023