Sonos Inc (SONO)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,661,860 | 1,741,010 | 1,716,560 | 1,324,680 | 1,253,490 |
| Receivables | US$ in thousands | 67,583 | 101,206 | 100,779 | 54,935 | 102,743 |
| Receivables turnover | 24.59 | 17.20 | 17.03 | 24.11 | 12.20 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,661,860K ÷ $67,583K
= 24.59
The receivables turnover ratio for Sonos Inc has exhibited fluctuations over the past five years. In the fiscal year ending Sep 30, 2023, the ratio increased to 24.49, indicating that the company collected its accounts receivable approximately 24.49 times during the period. This suggests a more efficient management of receivables compared to the previous year, where the ratio stood at 17.31. Similarly, the ratio was 17.03 in Oct 2, 2021, and 24.14 in Oct 3, 2020, showing variability in the collection of receivables over these years.
The significant improvement in receivables turnover in 2023 is noteworthy, signaling that Sonos Inc has been more effective in converting its credit sales into cash, potentially enhancing its liquidity and reducing the risk of bad debts. However, it is essential to consider the company's specific industry and business model when evaluating the significance of changes in the receivables turnover ratio.
Peer comparison
Sep 30, 2023