Liquidity Services Inc (LQDT)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	317,224	317,482	311,747	299,959	286,259	280,398	275,343	275,513	269,007	258,140	243,702	221,755	213,011	206,885	209,785	219,114	223,264	227,760	221,675	214,955
Receivables	US$ in thousands	7,745	7,848	6,257	5,960	7,969	11,792	8,127	6,606	7,797	5,866	5,470	5,731	4,801	5,322	5,159	5,972	5,949	6,704	5,742	6,175
Receivables turnover		40.96	40.45	49.82	50.33	35.92	23.78	33.88	41.71	34.50	44.01	44.55	38.69	44.37	38.87	40.66	36.69	37.53	33.97	38.61	34.81

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $317,224K ÷ $7,745K
= 40.96

Liquidity Services Inc's receivables turnover has shown some variability over the past eight quarters. The company's receivables turnover ratio ranged from a low of 23.75 in Q4 2022 to a high of 50.13 in Q2 2023. Overall, the trend seems to be fluctuating, with the ratio hovering around an average of 40 during the recent quarters.

A high receivables turnover ratio suggests that the company is efficient in collecting outstanding receivables from its customers. This efficiency may be indicative of effective credit policies or a strong customer base that pays promptly. However, a very high turnover ratio could also signal overly aggressive credit terms that may impact sales in the long term.

On the other hand, a low receivables turnover ratio may indicate potential problems with collecting receivables, such as customers taking longer to pay or issues with credit quality. It's important for the company to strike a balance in managing its receivables to ensure liquidity and cash flow stability.

In conclusion, while Liquidity Services Inc's fluctuating receivables turnover ratio may reflect some level of variability in its credit and collection practices, further analysis of the company's financial health and operational efficiency is needed to provide a more comprehensive assessment.