Maximus Inc (MMS)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	5,306,200	4,904,730	4,631,020	4,254,480	3,461,540
Receivables	US$ in thousands	879,514	826,873	807,110	834,819	786,200
Receivables turnover		6.03	5.93	5.74	5.10	4.40

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,306,200K ÷ $879,514K
= 6.03

Receivables turnover measures the efficiency of Maximus Inc in collecting its accounts receivable during a specific period. A higher receivables turnover indicates that the company is more effective in converting its credit sales into cash. From 2020 to 2024, Maximus Inc's receivables turnover has been steadily increasing, reflecting an improvement in the management of its accounts receivable. In 2024, the receivables turnover ratio reached 6.03, indicating that, on average, Maximus Inc collected its outstanding receivables approximately 6.03 times during the year. This suggests that the company has been increasingly efficient in collecting payments from its customers, which could lead to improved cash flows and liquidity. Overall, the trend in Maximus Inc's receivables turnover ratio indicates a positive performance in effectively managing its accounts receivable over the past five years.