Liquidity Services Inc (LQDT)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 367,205 | 317,498 | 280,423 | 258,046 | 207,151 |
| Receivables | US$ in thousands | 11,467 | 7,848 | 11,792 | 5,866 | 5,322 |
| Receivables turnover | 32.02 | 40.46 | 23.78 | 43.99 | 38.92 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $367,205K ÷ $11,467K
= 32.02
The receivables turnover ratio measures how efficiently a company collects its accounts receivable during a specific period. Liquidity Services Inc.'s receivables turnover has fluctuated over the past five years. In 2024, the company's receivables turnover was 32.02, down from 40.46 in 2023. This decrease could indicate a slower collection of accounts receivable compared to the previous year.
Comparing 2024 to 2022 and 2020, the receivables turnover ratios were 23.78 and 38.92, respectively. The significant increase from 2022 to 2023 and the decrease from 2023 to 2024 suggest that Liquidity Services Inc. has experienced some variability in its collections efficiency.
Overall, it is important for the company to manage its accounts receivable effectively to ensure a consistent cash flow and timely collection of outstanding payments from customers.
Peer comparison
Sep 30, 2024