Sonos Inc (SONO)

The receivables turnover ratio measures how efficiently a company is collecting its outstanding accounts receivable during a specific period. A higher receivables turnover ratio indicates better efficiency in collecting cash from customers.

For Sonos Inc, the receivables turnover has shown a fluctuating trend over the last five years. In fiscal year 2020, the ratio stood at 24.11, indicating that Sonos collected its accounts receivable approximately 24 times throughout the year. This was followed by a significant increase in 2021 to 17.03, signifying improved efficiency in collecting receivables.

In fiscal year 2022, the receivables turnover ratio further improved to 17.20, suggesting continued effectiveness in collecting outstanding payments from customers. However, in 2023, the ratio notably increased to 24.59, indicating a spike in the speed of accounts receivable collection compared to the previous year.

The most recent data for fiscal year 2024 reflects a significant increase in the receivables turnover ratio to 34.17, signaling a substantial improvement in Sonos' ability to convert accounts receivable into cash within the year. This spike indicates enhanced efficiency in collecting outstanding payments from customers, perhaps as a result of tightened credit policies or improved collections processes.

Overall, the upward trend in Sonos Inc's receivables turnover ratio over the past five years suggests a positive trajectory in the company's accounts receivable management and cash conversion cycle efficiency.

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Sep 30, 2024