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