Liveramp Holdings Inc (RAMP)

Receivables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	659,661	596,583	528,657	443,026	380,572
Receivables	US$ in thousands	198,834	186,276	178,697	179,976	131,101
Receivables turnover		3.32	3.20	2.96	2.46	2.90

March 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $659,661K ÷ $198,834K
= 3.32

The receivables turnover ratio for Liveramp Holdings Inc has shown a generally increasing trend over the past five years, from 2.90 in 2020 to 3.32 in 2024. This indicates that the company's ability to efficiently collect payments from its customers has improved over this period. A higher receivables turnover ratio suggests that the company is collecting its accounts receivable more frequently within a given period.

The improvement in receivables turnover could be a result of more effective credit and collection policies, better management of accounts receivable, or a shift towards customers with shorter payment cycles. A higher receivables turnover ratio is generally seen as a positive sign, as it reflects improved liquidity and reduced credit risk.

It is important to note that a high receivables turnover ratio may also indicate a very strict credit policy, potentially leading to reduced sales or growth opportunities. Therefore, while a higher ratio is beneficial, it should be balanced with the need to maintain good customer relationships and sustainable revenue growth.