Manhattan Associates Inc (MANH)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,048,890	932,692	769,284	664,197	585,552
Receivables	US$ in thousands	210,669	182,544	167,414	127,017	111,076
Receivables turnover		4.98	5.11	4.60	5.23	5.27

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,048,890K ÷ $210,669K
= 4.98

To analyze Manhattan Associates Inc's receivables turnover, we will use the data provided for the years 2020 to 2024. Receivables turnover is a financial ratio that measures how efficiently a company is collecting its accounts receivable during a specific period.

The receivables turnover ratio is calculated by dividing net credit sales by the average accounts receivable for the period. A higher ratio indicates that the company is collecting its receivables more quickly.

Looking at the data provided:

- In December 31, 2020, the receivables turnover ratio was 5.27.
- In December 31, 2021, the ratio slightly decreased to 5.23.
- In December 31, 2022, there was a more significant decrease in the ratio to 4.60.
- In December 31, 2023, the ratio increased to 5.11.
- In December 31, 2024, the ratio decreased again to 4.98.

The trend in the receivables turnover ratio for Manhattan Associates Inc shows some fluctuations over the years. Generally, the company has maintained a healthy receivables turnover ratio above 4, indicating efficient management of accounts receivable and timely collection of sales.

The decrease in the ratio in 2022 may suggest a slower collection of receivables during that period, while the subsequent increases in 2023 and the subsequent decrease in 2024 may indicate changes in the company's credit policies or the effectiveness of its collection efforts.

Overall, Manhattan Associates Inc's receivables turnover ratios demonstrate a reasonable level of efficiency in collecting outstanding payments from customers, although fluctuations in the ratio over the years should be further analyzed to understand the factors impacting the company's receivables management.