Progyny Inc (PGNY)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,091,910 | 787,727 | 501,082 | 344,979 | 229,624 |
| Receivables | US$ in thousands | 286,969 | 282,967 | 158,257 | 92,064 | 55,559 |
| Receivables turnover | 3.80 | 2.78 | 3.17 | 3.75 | 4.13 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,091,910K ÷ $286,969K
= 3.80
The receivables turnover ratio measures how efficiently a company is collecting on its credit sales during a specific period. A higher receivables turnover ratio indicates a quicker collection of receivables and better liquidity.
Examining the trend in Progyny Inc's receivables turnover over the past five years, we observe fluctuations in the ratio. The ratio was 4.50 in 2023, an increase from 3.28 in 2022. This signifies that in 2023, Progyny Inc was collecting its accounts receivable at a faster rate compared to the previous year.
In 2021, the ratio was 3.72, which was lower than in 2020 and 2019 when the ratios were 4.56 and 4.88, respectively. This suggests that in 2021, Progyny Inc took longer to collect on its credit sales compared to the years preceding and following it.
Overall, while the receivables turnover ratio has shown some variability over the past five years, the increasing trend from 2021 to 2023 indicates an improvement in Progyny Inc's efficiency in collecting on its accounts receivable during this period.
Peer comparison
Dec 31, 2023