Masimo Corporation (MASI)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,039,900	2,053,900	2,073,900	1,239,150	1,143,740
Receivables	US$ in thousands	19,600	384,100	19,100	203,175	143,633
Receivables turnover		104.08	5.35	108.58	6.10	7.96

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,039,900K ÷ $19,600K
= 104.08

The receivables turnover ratio for Masimo Corporation has exhibited variability over the years. In 2020, the ratio stood at 7.96, indicating that the company collected its accounts receivables approximately 7.96 times during the year. However, by December 31, 2021, the ratio had decreased to 6.10, suggesting a slight decrease in the efficiency of collecting receivables.

The year 2022 saw a significant spike in the receivables turnover ratio to 108.58, which may have been influenced by various factors such as changes in credit policies or improvements in collections processes. This exceptionally high ratio indicates that Masimo Corporation was able to collect its receivables far more frequently during that year.

Subsequently, in 2023 and 2024, the receivables turnover ratios dropped to 5.35 and 104.08, respectively. These decreases may signify potential issues with collecting receivables efficiently or changes in the company's customer base.

Overall, the trend in Masimo Corporation's receivables turnover ratio demonstrates fluctuations in the company's ability to efficiently collect outstanding receivables over the years, highlighting the importance of monitoring and managing accounts receivable effectively.