Semtech Corporation (SMTC)

Receivables turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	772,917	763,303	767,436	779,319	763,414	792,738	810,086	767,944	735,907	709,482	668,860	627,430	589,413	565,090	550,841	542,981	674,392	696,397	904,517	1,096,236
Receivables	US$ in thousands	151,624	156,613	159,097	145,383	174,220	80,539	71,105	—	71,507	74,313	—	—	70,433	58,700	51,672	49,451	61,927	61,444	58,643	66,459
Receivables turnover		5.10	4.87	4.82	5.36	4.38	9.84	11.39	—	10.29	9.55	—	—	8.37	9.63	10.66	10.98	10.89	11.33	15.42	16.49

January 28, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $772,917K ÷ $151,624K
= 5.10

The receivables turnover ratio for Semtech Corporation has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is collecting outstanding receivables from its customers during a specific period.

From January 28, 2024, to July 30, 2022, the receivables turnover ratio ranged between 4.82 to 11.39, with notable variability in performance. The turnover ratio peaked at 11.39 in October 30, 2022, indicating that Semtech was able to convert its accounts receivable into cash 11.39 times during that period.

The significant drop in the ratio to 4.38 on January 29, 2023, may suggest delays in collecting receivables or changes in the company's credit policies. However, this trend was reversed in April 26, 2023, with a ratio of 10.98, indicating improvements in receivables management.

The ratio reached its highest point at 16.49 on July 28, 2019, showing an exceptionally strong ability to collect receivables efficiently. This level of performance may indicate effective credit management practices or a focus on timely collections.

Overall, analyzing the receivables turnover ratios over time provides insights into Semtech Corporation's effectiveness in managing its accounts receivable and collecting payments from customers, highlighting periods of efficiency and potential areas for improvement.