Synopsys Inc (SNPS)

Receivables turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Revenue (ttm)	US$ in thousands	6,265,680	6,228,820	6,190,360	6,130,510	5,842,620	5,527,780	5,288,260	5,172,630	5,081,550	4,949,680	4,759,040	4,504,130	4,204,191	4,077,211	3,984,215	3,821,222	3,685,282	3,510,923	3,399,759	3,374,674
Receivables	US$ in thousands	978,636	805,198	834,918	1,064,140	1,006,980	666,577	779,892	1,035,320	842,345	682,647	722,992	1,038,750	604,090	577,845	612,285	789,320	831,641	638,489	634,807	799,078
Receivables turnover		6.40	7.74	7.41	5.76	5.80	8.29	6.78	5.00	6.03	7.25	6.58	4.34	6.96	7.06	6.51	4.84	4.43	5.50	5.36	4.22

October 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,265,680K ÷ $978,636K
= 6.40

Receivables turnover is a financial ratio that measures how efficiently a company is able to collect on its accounts receivable during a specific period. A higher receivables turnover ratio indicates that the company is collecting payments from its customers more quickly.

In the case of Synopsys Inc, the receivables turnover ratio has fluctuated over the past few years. The ratio ranged from a low of 4.22 in January 2020 to a high of 8.29 in July 2023. This variability suggests potential changes in the company's credit policies, customer payment behaviors, or the overall economic environment.

Overall, the average receivables turnover for Synopsys Inc over the period analyzed is approximately 6.44. This means that, on average, the company collects payments from its customers about 6.44 times a year. It is important to further investigate the reasons behind the fluctuations in the receivables turnover ratio to assess the effectiveness of Synopsys Inc's credit management and collection practices.