Masimo Corporation (MASI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,053,900 | 2,073,900 | 1,239,150 | 1,143,740 | 937,837 |
| Receivables | US$ in thousands | 384,100 | 19,100 | 203,175 | 143,633 | 3,044 |
| Receivables turnover | 5.35 | 108.58 | 6.10 | 7.96 | 308.09 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,053,900K ÷ $384,100K
= 5.35
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. Masimo Corporation's receivables turnover ratio has fluctuated significantly over the past five years.
In 2019, the ratio was exceptionally high at 308.09, indicating that Masimo was able to collect its accounts receivable over 300 times during the year. This could be an anomaly or a reflection of the company's strong credit control and collection policies.
In 2020, the receivables turnover ratio decreased to 7.96, which is a significant drop from the previous year. This suggests that Masimo took longer to collect cash from its customers in 2020 compared to 2019.
In 2021, there was a slight improvement in the receivables turnover ratio to 6.10, but it remained relatively low compared to 2019. This indicates that Masimo's collection efficiency improved slightly but was still below the historical high.
In 2022, there was a sharp increase in the receivables turnover ratio to 108.58, indicating a significant improvement in collection efficiency compared to the previous years. This could be due to better management of accounts receivable or changes in customer payment behaviors.
In 2023, the receivables turnover ratio decreased to 5.35, which is a notable drop from the previous year. This decline suggests that Masimo faced challenges in collecting cash from its customers efficiently in 2023.
Overall, Masimo Corporation's receivables turnover ratio has shown significant fluctuations over the past five years, reflecting changes in the company's ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2023