OSI Systems Inc (OSIS)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,533,660	1,280,430	1,211,210	1,145,600	1,162,640
Receivables	US$ in thousands	648,155	380,845	308,094	296,659	281,368
Receivables turnover		2.37	3.36	3.93	3.86	4.13

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,533,660K ÷ $648,155K
= 2.37

The receivables turnover ratio for OSI Systems Inc has been declining over the past five years, indicating a longer time taken to collect outstanding receivables. In Jun 30, 2020, the ratio was the highest at 4.13, but it has been decreasing steadily since then. In Jun 30, 2024, the ratio dropped to 2.37, reflecting a decline in the company's efficiency in converting its accounts receivable into cash during the year. A lower receivables turnover ratio may suggest potential issues with the company's credit policies, collection processes, or the quality of its receivables. Further investigation into the causes of this decline and potential strategies for improvement may be warranted to enhance the company's liquidity and overall financial performance.