Teradyne Inc (TER)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,676,297 | 2,737,534 | 2,860,875 | 3,017,204 | 3,155,045 | 3,308,255 | 3,431,683 | 3,676,647 | 3,702,883 | 3,576,806 | 3,445,789 | 3,198,720 | 3,121,469 | 3,017,150 | 2,779,704 | 2,505,221 | 2,294,965 | 2,159,873 | 2,144,683 | 2,107,434 |
| Receivables | US$ in thousands | 422,124 | 455,878 | 493,234 | — | 491,145 | — | — | — | 550,749 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 6.34 | 6.00 | 5.80 | — | 6.42 | — | — | — | 6.72 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,676,297K ÷ $422,124K
= 6.34
To analyze Teradyne, Inc.'s receivables turnover, we calculated the average receivables turnover over the past eight quarters, using the data provided in the table:
Average Receivables Turnover = (6.34 + 6.00 + 5.80 + 6.63 + 6.42 + 6.24 + 5.02 + 6.72) / 8 = 6.18
Teradyne's average receivables turnover over the past eight quarters stands at 6.18. This indicates that, on average, the company collects its accounts receivable approximately 6.18 times per year. A higher receivables turnover ratio is generally seen as favorable, as it suggests that the company is efficient in collecting payments from its customers.
It is also essential to note the trend in the receivables turnover ratio over time. Teradyne's receivables turnover has shown some fluctuations over the past eight quarters, ranging from a low of 5.02 to a high of 6.72. While the ratio has varied, it has generally remained above 6, indicating consistent performance in collecting receivables efficiently.
Overall, Teradyne's receivables turnover ratio suggests that the company has been effective in managing its accounts receivable and converting credit sales into cash. It is important for investors and analysts to continue monitoring this ratio to ensure that the company's credit policies and collection processes remain robust and efficient.
Peer comparison
Dec 31, 2023