OSI Systems Inc (OSIS)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,713,170 | 1,538,760 | 1,278,430 | 1,183,240 | 1,146,900 |
| Receivables | US$ in thousands | 837,743 | 648,155 | 380,845 | 307,973 | 290,653 |
| Receivables turnover | 2.04 | 2.37 | 3.36 | 3.84 | 3.95 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,713,170K ÷ $837,743K
= 2.04
The receivables turnover ratio of OSI Systems Inc has demonstrated a consistent downward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 3.95 in 2021 to 3.84 in 2022, indicating a slight decline in the efficiency of collecting accounts receivable. The decline becomes more pronounced in subsequent years, with the ratio dropping to 3.36 in 2023, further falling to 2.37 in 2024, and reaching 2.04 in 2025.
This decreasing pattern suggests a gradual slowdown in the company's collection efforts or changes in its credit policies, possibly leading to longer collection cycles. A lower receivables turnover ratio typically indicates that the company is taking more time to convert receivables into cash, which could impact cash flow and liquidity if the trend continues. However, it may also reflect strategic decisions to extend credit terms to customers.
Overall, the sustained decline in the receivables turnover suggests an increasing average collection period, which warrants further investigation to understand its causes and implications on the company's liquidity and operational efficiency.
Peer comparison
Jun 30, 2025