Lantheus Holdings Inc (LNTH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,276,390	927,032	418,071	329,671	330,557
Receivables	US$ in thousands	284,292	213,397	89,336	54,002	43,529
Receivables turnover		4.49	4.34	4.68	6.10	7.59

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,276,390K ÷ $284,292K
= 4.49

The receivables turnover ratio for Lantheus Holdings Inc has shown a declining trend over the past five years. The ratio was 7.98 in 2019 and has gradually decreased to 4.56 in 2023. This indicates that the company's efficiency in collecting payments from customers has decreased over the years.

A lower receivables turnover ratio may suggest that the company is extending more credit to customers, which could potentially increase the risk of bad debts or delayed collections. It may also indicate inefficiencies in the company's collection process or difficulties in managing accounts receivable.

It is important for Lantheus Holdings Inc to monitor and improve its receivables turnover ratio to ensure timely collection of outstanding receivables and maintain a healthy cash flow. Analyzing the trend in receivables turnover ratio can provide insights into the company's credit and collection policies, as well as its overall financial health.