Envista Holdings Corp (NVST)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,566,500 | 2,569,100 | 2,508,900 | 1,929,100 | 2,284,800 |
| Receivables | US$ in thousands | 407,500 | 393,500 | 331,900 | 361,000 | 443,600 |
| Receivables turnover | 6.30 | 6.53 | 7.56 | 5.34 | 5.15 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,566,500K ÷ $407,500K
= 6.30
The receivables turnover ratio of Envista Holdings Corp has shown some fluctuations over the past five years. The ratio peaked in 2021 at 7.56 and then decreased to 6.32 in 2020 before slightly increasing again to 6.53 in 2022. In 2023, the ratio further declined to 6.30.
A high receivables turnover ratio indicates that the company is efficient in collecting payments from its customers, converting accounts receivable into cash quickly. However, a declining ratio over the years may suggest a potential issue with collecting receivables efficiently.
It is important for the company to assess the reasons behind the fluctuations in the receivables turnover ratio and take necessary actions to improve collections processes if needed. Monitoring this ratio can help management gauge the effectiveness of their credit and collection policies and better manage cash flow.
Peer comparison
Dec 31, 2023