Mercury Systems Inc (MRCY)

The receivables turnover ratio for Mercury Systems Inc. demonstrates notable fluctuations over the five-year period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the ratio stood at 3.17, indicating that the company was able to collect its receivables approximately three times within that year. This ratio declined sharply to 2.21 in 2022, reflecting a slowdown in collection efficiency.

In 2023, the receivables turnover further decreased to 1.92, which suggests a continued elongation in the receivable collection period. This trend may point to challenges in receivables management or potential shifts in credit policies, customer payment behaviors, or industry conditions affecting cash collection cycles.

However, in the subsequent year, 2024, there was a slight improvement in the ratio to 2.01, indicating a marginal increase in collection frequency but still remaining below the 2021 level. This suggests a partial recovery in receivables collection efforts or favorable changes in customer payments.

By 2025, the receivables turnover ratio increased further to 2.35, approaching the 2022 figures but still below the initial 2021 level. This upward movement indicates a gradual improvement in collection efficiency, yet it remains below the historical peak experienced at the end of 2021.

Overall, the trend illustrates a decline from the high of 3.17 in 2021 to a low of 1.92 in 2023, followed by a moderate recovery towards 2.35 in 2025. The fluctuations imply variations in the company's credit and collection policies, customer payment practices, or possibly changes in the industry environment that influence receivables management. The current ratios suggest that while the company has made some progress in improving collection cycles, it has yet to return to the levels observed in 2021.

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Jun 30, 2025