Simulations Plus Inc (SLP)

Receivables turnover

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836	33,971	32,633
Receivables	US$ in thousands	13,114	10,346	10,201	10,214	11,398	11,699	13,787	18,587	15,039	11,823	9,851	12,962	11,306	7,331	7,422	10,853	7,244	6,353	5,027	7,735
Receivables turnover		4.93	6.00	5.84	5.45	4.77	4.57	3.91	2.80	3.31	4.08	4.72	3.56	4.04	5.85	5.60	3.69	5.21	5.64	6.76	4.22

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $64,668K ÷ $13,114K
= 4.93

The receivables turnover ratio for Simulations Plus Inc fluctuated over the past few periods, ranging from a low of 2.80 to a high of 6.00. The ratio measures how efficiently the company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more frequently.

In recent periods, the company's receivables turnover ratios have generally been above 4, suggesting that Simulations Plus Inc has been effective in managing and collecting its receivables. The ratios have shown an increasing trend, reaching a peak of 6.00 in the most recent period, Nov 30, 2023. This improvement indicates that the company has been accelerating its collection of accounts receivable, potentially improving its cash flow and liquidity.

However, it is essential to consider industry benchmarks and historical trends to fully assess the efficiency of the company's receivables management. Additionally, analyzing the reasons behind fluctuations in the ratio can provide insights into the company's credit policies, customer payment behavior, and overall financial health.