Neurocrine Biosciences Inc (NBIX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,355,100 | 1,883,200 | 1,411,600 | 1,107,700 | 994,700 |
| Receivables | US$ in thousands | 493,500 | 439,300 | 350,000 | 187,700 | 160,800 |
| Receivables turnover | 4.77 | 4.29 | 4.03 | 5.90 | 6.19 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,355,100K ÷ $493,500K
= 4.77
The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables within a specific period. Looking at the data provided for Neurocrine Biosciences Inc, we observe a trend in the company's receivables turnover over the years:
1. In December 31, 2020, the receivables turnover ratio was 6.19, indicating that Neurocrine Biosciences Inc collected its outstanding receivables 6.19 times during that year.
2. The ratio decreased slightly to 5.90 by December 31, 2021, suggesting a slight decrease in the efficiency of collecting receivables compared to the previous year.
3. A more noticeable drop occurred by December 31, 2022, with the ratio falling to 4.03. This significant decrease may signal challenges in collecting receivables promptly or changes in the company's customer base.
4. However, by December 31, 2023, the receivables turnover improved to 4.29, indicating a slight recovery in the collection efficiency.
5. Finally, by December 31, 2024, the ratio rose further to 4.77, showing continued improvement in collecting outstanding receivables.
Overall, the fluctuation in Neurocrine Biosciences Inc's receivables turnover ratio over the years suggests varying levels of efficiency in collecting receivables. It is essential for the company to monitor this ratio closely to ensure effective management of its accounts receivable and cash flow.
Peer comparison
Dec 31, 2024