OSI Systems Inc (OSIS)

Receivables turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,713,166	1,689,088	1,650,140	1,603,555	1,538,758	1,469,721	1,367,204	1,289,566	1,278,427	1,203,378	1,190,966	1,172,050	1,183,236	1,178,613	1,171,923	1,171,251	1,146,902	1,091,671	1,100,767	1,130,100
Receivables	US$ in thousands	837,743	672,176	703,933	687,610	648,155	503,828	370,168	323,769	380,845	300,663	322,756	313,506	307,973	282,872	288,037	292,004	290,653	258,594	263,071	253,149
Receivables turnover		2.04	2.51	2.34	2.33	2.37	2.92	3.69	3.98	3.36	4.00	3.69	3.74	3.84	4.17	4.07	4.01	3.95	4.22	4.18	4.46

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,713,166K ÷ $837,743K
= 2.04

The receivables turnover ratio for OSI Systems Inc. exhibits notable fluctuations over the analyzed period, reflecting variations in the efficiency of accounts receivable management. Starting at 4.46 times as of September 30, 2020, the ratio shows a gradual declining trend, with intermittent minor recoveries, reaching approximately 2.04 times by June 30, 2025.

In the initial phase, the ratio remained relatively stable around the 4.2 to 4.5 range through early 2021, indicating a consistent collection period and effective credit policies. However, beginning in mid-2021, the ratio shows a slow decline, suggesting a slight increase in the average days receivables or potential loosening of credit terms or collection efficiency.

The decline accelerates notably after March 2022, with the ratio dropping below 4.0 and continuing downward to the low 2s by mid-2025. This sustained decrease indicates that the company is taking longer to convert receivables into cash, which could be a result of extended credit terms, collection challenges, or changes in customer payment behaviors. The ratio’s lowest point among the data is approximately 2.04 times as of June 30, 2025.

In summary, OSI Systems Inc. has experienced a general downward trend in its receivables turnover over the analyzed period, moving from a high of approximately 4.46 times to around 2.04 times. This trend suggests an elongation in receivable collection periods, warranting further assessment of credit policies or collection strategies to ensure liquidity and optimize cash flow management.