Pegasystems Inc (PEGA)

Receivables turnover

		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	Jun 30, 2020
Revenue (ttm)	US$ in thousands	1,642,666	1,497,180	1,480,583	1,490,176	1,437,291	1,432,616	1,354,853	1,290,941	1,267,010	1,317,845	1,237,559	1,223,096	1,274,461	1,211,653	1,194,069	1,163,752	1,065,425	1,017,517	995,459	986,211
Receivables	US$ in thousands	424,936	539,960	378,534	364,392	390,661	558,594	401,669	416,658	434,671	255,150	346,450	407,817	408,998	182,717	383,219	402,677	387,927	536,260	346,776	379,939
Receivables turnover		3.87	2.77	3.91	4.09	3.68	2.56	3.37	3.10	2.91	5.16	3.57	3.00	3.12	6.63	3.12	2.89	2.75	1.90	2.87	2.60

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,642,666K ÷ $424,936K
= 3.87

The receivables turnover ratio measures how effectively a company collects its accounts receivable, with higher ratios indicating faster collection cycles. In the case of Pegasystems Inc., the data from June 2020 through March 2025 demonstrates notable fluctuations in this metric over the observed period.

Initially, from June 2020 to September 2021, there is a steady upward trend in receivables turnover, increasing from 2.60 to 3.12. This suggests that during this period, Pegasystems improved its collection efficiency, potentially due to stronger credit policies, enhanced collection efforts, or changes in customer payment behaviors.

A significant spike occurs at December 2021, where the ratio jumps sharply to 6.63. This jump indicates a substantial acceleration in receivable collections, possibly reflecting one-time collection efficiencies, strategic shifts in credit management, or improved client payment timing. However, this elevated level is not sustained, as the ratio declines again to 3.12 by March 2022 and further fluctuates within a range of approximately 2.56 to 3.91 in subsequent periods.

From late 2022 onward, the ratio exhibits modest increases, reaching a peak of approximately 4.09 in June 2024, followed by slight declines. It demonstrates a relatively stable collection pattern within the 2.5 to 4.0 range, indicating consistent receivable management practices without significant deterioration or acceleration over this period.

Overall, the data reflects that Pegasystems Inc.'s receivables turnover ratio has experienced periods of improvement, notably in late 2021, but has largely remained within a moderate range, indicative of steady collection cycles typical in the software industry. The fluctuations highlight potential seasonal effects, strategic policy changes, or varying customer payment behaviors, but there is no evidence of persistent deterioration or extraordinary collection challenges over the analyzed time frame.