Merck & Company Inc (MRK)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	60,114,000	59,314,000	58,311,000	57,869,000	59,283,000	58,974,000	57,169,000	53,978,000	48,704,000	46,131,000	43,906,000	41,857,000	43,287,000	36,488,000	37,956,000	40,363,000	39,122,000	45,971,000	44,368,000	43,073,000
Receivables	US$ in thousands	10,349,000	10,394,000	11,030,000	10,415,000	9,450,000	9,482,000	9,643,000	9,828,000	9,230,000	8,571,000	7,843,000	8,235,000	7,851,000	8,422,000	7,577,000	8,182,000	6,778,000	8,442,000	7,964,000	7,608,000
Receivables turnover		5.81	5.71	5.29	5.56	6.27	6.22	5.93	5.49	5.28	5.38	5.60	5.08	5.51	4.33	5.01	4.93	5.77	5.45	5.57	5.66

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $60,114,000K ÷ $10,349,000K
= 5.81

The receivables turnover for Merck & Co Inc has shown some fluctuations over the past eight quarters, ranging from a low of 5.29 in Q2 2023 to a high of 6.27 in Q4 2022. On average, the company has been able to convert its accounts receivables into cash approximately 5.78 times a year.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivables more frequently, which can be a positive sign of efficient credit management and liquidity. Conversely, a lower ratio may suggest that the company is taking longer to collect on its credit sales.

Overall, it appears that Merck & Co Inc has been managing its receivables effectively, although there has been some variability in the turnover ratio over the past eight quarters. Monitoring this ratio moving forward will be important to ensure continued efficiency in receivables management.