Shutterstock (SSTK)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	932,869	902,216	882,354	872,467	875,466	876,879	847,509	842,783	826,489	812,053	802,190	789,207	770,112	745,582	716,961	685,134	665,050	650,477	644,873	646,683
Receivables	US$ in thousands	95,225	92,169	97,442	93,993	91,139	85,406	61,715	48,303	67,249	52,713	48,816	44,774	47,707	45,323	49,756	49,261	43,846	48,225	48,744	45,216
Receivables turnover		9.80	9.79	9.06	9.28	9.61	10.27	13.73	17.45	12.29	15.41	16.43	17.63	16.14	16.45	14.41	13.91	15.17	13.49	13.23	14.30

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $932,869K ÷ $95,225K
= 9.80

The receivables turnover ratio of Shutterstock has displayed fluctuations over the past few years based on the provided data. The ratio indicates how efficiently the company is collecting its accounts receivables during a specific period.

The trend in receivables turnover shows that from March 31, 2020, to March 31, 2022, there was a general increase in the turnover ratio, reflecting an improvement in the company's ability to convert its receivables into cash. This could be a positive indicator of effective credit control and collection policies during this period.

However, from March 31, 2022, to December 31, 2024, the receivables turnover ratio experienced a decline. This downward trend may suggest potential issues with the company's credit policies, collection procedures, or possibly a change in customer payment behavior.

The sharp decline in the receivables turnover ratio from September 30, 2023, to December 31, 2024, indicates a significant slowdown in the collection of accounts receivables, which could potentially strain the company's liquidity and cash flow.

Overall, a declining receivables turnover ratio may warrant further investigation into the company's credit management practices and the quality of its accounts receivables to address any underlying issues and ensure efficient cash flow management in the future.