Progyny Inc (PGNY)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,165,810 | 1,091,910 | 787,727 | 501,082 | 344,979 |
| Receivables | US$ in thousands | 282,324 | 286,969 | 282,967 | 158,257 | 92,064 |
| Receivables turnover | 4.13 | 3.80 | 2.78 | 3.17 | 3.75 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,165,810K ÷ $282,324K
= 4.13
The receivables turnover ratio measures how efficiently a company is able to collect revenues owed by customers. Looking at Progyny Inc's receivables turnover from December 31, 2020, to December 31, 2024, we observe a trend. In 2020, the company had a receivables turnover of 3.75, which declined to 3.17 in 2021, further dropping to 2.78 in 2022. However, there was a significant improvement in 2023, with the ratio increasing to 3.80 and showing a further increase to 4.13 in 2024.
The declining trend from 2020 to 2022 could indicate potential issues with the company's credit policies, collection efforts, or possibly an increase in credit sales. However, the improvement in the receivables turnover ratio in 2023 and 2024 suggests that Progyny Inc may have implemented more effective collection strategies or tightened credit policies.
Overall, it is essential for Progyny Inc to closely monitor its receivables turnover ratio to ensure efficient management of accounts receivable and timely collection of outstanding payments. The recent improvement in the ratio is a positive sign, indicating the company's efforts to enhance its credit management practices.
Peer comparison
Dec 31, 2024