Liveramp Holdings Inc (RAMP)

Receivables turnover

		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	Mar 31, 2020
Revenue (ttm)	US$ in thousands	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	380,572
Receivables	US$ in thousands	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	139,407
Receivables turnover		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	2.73

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $728,708K ÷ $217,195K
= 3.36

Liveramp Holdings Inc's receivables turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The receivables turnover ratio measures how efficiently a company is collecting on its credit sales during a specific period.

From March 31, 2020, to December 31, 2020, the company's receivables turnover ratio fluctuated between 2.63 and 2.92, indicating some variability in the collection of credit sales. In the first half of 2021, the ratio decreased to 2.34 but then increased to 3.01 by June 30, 2022, and continued to improve to 3.68 by September 30, 2024.

The overall trend shows an improvement in the efficiency of collecting receivables over the years, with the ratio generally increasing from 2020 to 2024. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient credit management.

However, it is important to further analyze the reasons behind the fluctuations to determine if they are due to changes in credit policies, customer payment behavior, or other factors. Monitoring and analyzing the receivables turnover ratio can provide insights into the effectiveness of the company's credit and collection policies and its overall financial health.