Liveramp Holdings Inc (RAMP)

Receivables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	745,580	728,708	707,165	681,553	659,661	636,435	621,181	608,409	596,583	589,682	571,671	551,862	528,657	506,107	485,256	462,627	443,026	429,552	412,016	397,498
Receivables	US$ in thousands	186,169	217,195	192,067	208,234	198,834	200,526	174,703	173,083	186,276	200,506	187,682	183,545	178,697	219,506	195,027	184,655	189,031	163,567	141,940	136,248
Receivables turnover		4.00	3.36	3.68	3.27	3.32	3.17	3.56	3.52	3.20	2.94	3.05	3.01	2.96	2.31	2.49	2.51	2.34	2.63	2.90	2.92

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $745,580K ÷ $186,169K
= 4.00

The receivables turnover ratio for Liveramp Holdings Inc has exhibited fluctuations over the periods analyzed. The ratio was relatively stable around the range of 2.3 to 2.6 between December 2020 and March 2022. However, from June 2022 onwards, there has been a consistent upward trend in the receivables turnover ratio, reaching a peak of 4.00 as of March 31, 2025.

An increasing trend in the receivables turnover ratio indicates that Liveramp is collecting its accounts receivable more efficiently, converting those receivables into cash more rapidly. This may suggest effective credit management, timely collection of payments from customers, or potentially stricter credit policies.

A higher receivables turnover ratio generally signifies that the company is efficient in managing its credit and collection practices. It also implies that the company has lower exposure to bad debts or delays in receiving payments, which can positively impact its liquidity and cash flow position.

Overall, the trend of increasing receivables turnover ratio for Liveramp Holdings Inc demonstrates an improvement in the efficiency of the company's accounts receivable management over the analyzed periods. It indicates a positive development in the company's ability to collect outstanding receivables promptly and effectively.