Masimo Corporation (MASI)

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	2,047,100	2,130,300	2,204,300	2,322,800	2,062,041	1,774,419	1,519,833	1,244,351	1,239,153	1,206,629	1,177,327	1,173,162	1,143,744	1,096,200	1,047,099	975,798	937,837	913,459	895,031	877,000
Receivables	US$ in thousands	384,100	383,700	373,700	—	19,100	—	—	—	203,175	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover		5.33	5.55	5.90	—	107.96	—	—	—	6.10	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,047,100K ÷ $384,100K
= 5.33

The receivables turnover ratio for Masimo Corporation has shown some fluctuations over the recent quarters. The ratio was 5.33 at the end of December 2023, increased to 5.55 by the end of September 2023, and further improved to 5.90 by June 2023. However, there seems to be missing data for the previous quarters.

The sudden increase in the ratio indicates that Masimo Corporation is collecting its accounts receivables more frequently within the given period. A higher receivables turnover ratio signifies efficient management of receivables and potentially represents a quicker conversion of credit sales into cash, which is a positive indicator of the company's liquidity and operational efficiency.

It is important to note that a receivables turnover ratio of 107.96 was reported at the end of December 2022, which seems unusually high and could be an outlier or related to specific circumstances like large one-time collections of receivables.

Overall, the trend of increasing receivables turnover ratio from Q1 to Q3 of 2023 is generally positive and indicates that Masimo Corporation is effectively managing its accounts receivable and collecting cash from its customers in a timely manner.