Merit Medical Systems Inc (MMSI)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,236,650	1,143,170	1,068,790	952,099	982,685
Receivables	US$ in thousands	188,402	177,669	170,064	154,415	165,381
Receivables turnover		6.56	6.43	6.28	6.17	5.94

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,236,650K ÷ $188,402K
= 6.56

The receivables turnover for Merit Medical Systems, Inc. has shown a consistent improvement over the past five years, indicating the company's ability to efficiently collect outstanding receivables from customers. The ratio has increased from 5.90 in 2019 to 6.64 in 2023, reflecting a positive trend in managing its accounts receivable effectively.

A higher receivables turnover ratio suggests that the company is collecting payments from customers more frequently within a given period, which is typically viewed as favorable as it signifies a shorter conversion cycle from credit sales to cash.

This improvement in receivables turnover may indicate that Merit Medical Systems, Inc. has implemented more stringent credit policies, improved collection processes, or strengthened customer relationships, all of which contribute to a healthier cash flow and overall financial performance. It showcases the company's effectiveness in managing its credit sales and collecting payments promptly, which is important for maintaining liquidity and operational efficiency.