Synopsys Inc (SNPS)

Receivables turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Revenue	US$ in thousands	6,127,440	5,842,620	5,081,540	4,204,190	3,685,280
Receivables	US$ in thousands	978,636	1,006,980	842,345	604,090	831,641
Receivables turnover		6.26	5.80	6.03	6.96	4.43

October 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $6,127,440K ÷ $978,636K
= 6.26

Synopsys Inc's receivables turnover has shown a fluctuating trend over the past five years, ranging from 4.43 to 6.96. The receivables turnover ratio measures how effectively the company collects its accounts receivable during a specific period. A higher ratio indicates a more efficient collection process, while a lower ratio may suggest potential issues with collecting payments from customers.

In 2024, the receivables turnover ratio was 6.26, representing a slight increase from the previous year. This improvement suggests that Synopsys Inc was able to collect its outstanding receivables more quickly in 2024 compared to 2023.

However, it is important to note that a very high receivables turnover ratio could also indicate a very tight credit policy that may be turning away potential customers.

Overall, Synopsys Inc's receivables turnover ratio suggests that the company has been relatively efficient in collecting its accounts receivable over the past five years, with some fluctuations in performance. Further analysis of the company's credit policies and collection processes may provide more insight into the reasons behind these fluctuations.