Simulations Plus Inc (SLP)

Receivables turnover

		Aug 31, 2024	May 31, 2024	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
Revenue (ttm)	US$ in thousands	72,188	68,509	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
Receivables	US$ in thousands	9,136	10,144	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
Receivables turnover		7.90	6.75	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

August 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $72,188K ÷ $9,136K
= 7.90

The receivables turnover ratio for Simulations Plus Inc has exhibited fluctuations over the past few quarters, ranging from as low as 2.80 to as high as 7.90. The ratio indicates how efficiently the company is able to collect outstanding receivables.

In the latest period, ending August 31, 2024, the receivables turnover was 7.90, which suggests that, on average, the company collected its outstanding receivables approximately 7.90 times during the year. This is an improvement from the previous quarter's ratio of 6.75, indicating a more efficient management of accounts receivable.

Overall, the trend in receivables turnover has been somewhat inconsistent, with occasional fluctuations observed. It would be prudent for stakeholders to further investigate the reasons behind these fluctuations to assess the effectiveness of the company's credit and collection policies, as well as the financial health of its customers.