Mercury Systems Inc (MRCY)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 835,275 | 973,882 | 988,197 | 923,996 | 796,610 |
| Receivables | US$ in thousands | 111,441 | 124,729 | 144,494 | 128,807 | 120,438 |
| Receivables turnover | 7.50 | 7.81 | 6.84 | 7.17 | 6.61 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $835,275K ÷ $111,441K
= 7.50
The receivables turnover for Mercury Systems Inc has been relatively stable over the past five years, ranging from 6.61 to 7.81 times. The ratio measures how efficiently the company is able to collect on its credit sales during a given period. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
In this case, with a generally consistent turnover ratio over the years, Mercury Systems Inc appears to have a solid and stable collection process. A turnover ratio above 1 suggests that the company is collecting its receivables multiple times a year, which is generally considered a positive indicator of operational efficiency.
Overall, based on the trend of the receivables turnover ratio, Mercury Systems Inc seems to have a consistent approach to managing its accounts receivable, which is an important aspect of its financial performance.
Peer comparison
Jun 30, 2024