Manhattan Associates Inc (MANH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	932,692	769,284	664,197	585,552	619,801
Receivables	US$ in thousands	182,544	167,414	127,017	111,076	102,269
Receivables turnover		5.11	4.60	5.23	5.27	6.06

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $932,692K ÷ $182,544K
= 5.11

The receivables turnover ratio measures how efficiently a company is able to collect payment from its customers. It is calculated by dividing the net credit sales by the average accounts receivable for the period.

Looking at the historical trend of Manhattan Associates, Inc.'s receivables turnover ratio, we can observe fluctuations over the past five years. In 2019, the ratio was at its highest at 6.04, indicating that the company was able to collect payments from customers relatively quickly. However, in subsequent years, the ratio decreased, reaching a low of 4.58 in 2022.

In 2023, the receivables turnover ratio improved to 5.09, signaling a better ability to convert accounts receivable into cash compared to the previous year. This increase may suggest that Manhattan Associates, Inc. has been more effective in managing its receivables or that it has improved its credit policies to encourage timely customer payments.

Overall, while there have been fluctuations in Manhattan Associates, Inc.'s receivables turnover ratio in recent years, the slight improvement in 2023 is a positive sign of enhanced efficiency in collecting payments from customers. Further analysis of the underlying reasons for these changes would provide a more comprehensive understanding of the company's receivables management.