Progyny Inc (PGNY)

Receivables turnover

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Revenue (ttm) US$ in thousands 1,091,902 1,036,101 959,749 874,714 787,727 700,482 617,337 551,196 501,082 473,730 450,213 385,920 344,979 309,953 272,210
Receivables US$ in thousands 286,969 318,166 310,458 362,245 282,967 323,735 266,064 229,420 158,257 159,981 166,367 139,866 92,064 103,302 73,496 86,962 55,559 53,537
Receivables turnover 3.80 3.26 3.09 2.41 2.78 2.16 2.32 2.40 3.17 2.96 2.71 2.76 3.75 3.00 3.70

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,091,902K ÷ $286,969K
= 3.80

The receivables turnover ratio measures how efficiently a company collects its outstanding accounts receivable during a certain period. A higher turnover ratio indicates that a company is effectively managing its credit sales and collecting payments in a timely manner.

Analyzing the data provided for Progyny Inc's receivables turnover ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the receivables turnover ratio stood at 4.50, indicating that Progyny converted its accounts receivable into cash 4.50 times during that quarter. This represented an improvement from the previous quarter, where the ratio was 3.84.

The trend in the receivables turnover ratio for Progyny Inc shows variability over time, ranging from 2.68 in Q2 2022 to the highest value of 4.50 in Q4 2023. Generally, a higher turnover ratio is favorable as it suggests effective credit management and timely collection of payments. However, it is also important to consider industry benchmarks and company-specific factors when interpreting this ratio.

It is recommended for Progyny Inc to continue monitoring its receivables turnover ratio and implementing strategies to maintain or improve the efficiency of its accounts receivable management.


Peer comparison

Dec 31, 2023

Company name
Symbol
Receivables turnover
Progyny Inc
PGNY
3.80
DaVita HealthCare Partners Inc
DVA
5.03
Sotera Health Co
SHC
6.65