Simulations Plus Inc (SLP)
Receivables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 74,774 | 59,577 | 53,906 | 46,466 | 41,589 |
| Receivables | US$ in thousands | 9,136 | 10,201 | 13,787 | 9,851 | 7,422 |
| Receivables turnover | 8.18 | 5.84 | 3.91 | 4.72 | 5.60 |
August 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $74,774K ÷ $9,136K
= 8.18
The receivables turnover ratio for Simulations Plus Inc has shown a fluctuating trend over the past five years. The company's ability to convert its accounts receivable into cash has improved significantly from 3.91 in 2022 to 8.18 in 2024. This indicates that the company is collecting its outstanding receivables more efficiently in the most recent year.
A higher receivables turnover ratio signifies that the company is able to collect payments from its customers more frequently during the year, which is a positive indicator of liquidity and efficiency. It may suggest favorable credit policies, effective collection efforts, or a portfolio of creditworthy customers.
Overall, the upward trend in Simulations Plus Inc's receivables turnover ratio is a favorable sign of the company's ability to manage its accounts receivable effectively and convert them into cash in a timely manner.
Peer comparison
Aug 31, 2024