Microchip Technology Inc (MCHP)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,634,400 | 8,438,700 | 6,820,900 | 5,438,400 | 5,274,200 |
| Receivables | US$ in thousands | 1,143,700 | 1,305,300 | 1,072,600 | 997,700 | 934,000 |
| Receivables turnover | 6.68 | 6.46 | 6.36 | 5.45 | 5.65 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,634,400K ÷ $1,143,700K
= 6.68
The receivables turnover ratio for Microchip Technology Inc has been relatively stable over the past five years, ranging from 5.45 to 6.68. This ratio measures the efficiency of the company in collecting outstanding receivables from its customers within a given period.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it implies better cash flow management. The consistent improvement in the receivables turnover ratio over the years suggests that Microchip Technology Inc has been effectively managing its credit and collection policies, resulting in quicker conversion of credit sales into cash.
Overall, the trend in the receivables turnover ratio suggests that Microchip Technology Inc has been efficient in managing its accounts receivable and collecting payments from customers in a timely manner.
Peer comparison
Mar 31, 2024