Teleflex Incorporated (TFX)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,908,220	2,757,200	2,758,900	2,489,840	2,525,140
Receivables	US$ in thousands	443,467	408,834	383,569	395,071	418,673
Receivables turnover		6.56	6.74	7.19	6.30	6.03

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,908,220K ÷ $443,467K
= 6.56

The receivables turnover ratio for Teleflex Incorporated has been relatively stable over the past five years, ranging from 6.20 to 7.32. This ratio indicates how efficiently the company is able to collect cash from its credit sales within a given period. A higher ratio typically suggests that the company is collecting its receivables more quickly, which is seen as a positive sign of strong cash flow management.

In the case of Teleflex, the trend shows a slightly decreasing pattern in recent years, with the ratio declining from 7.32 in 2021 to 6.71 in 2023. This may indicate a potential slowdown in the collection of receivables, which could be a cause for concern as it may lead to liquidity constraints or increased bad debts.

Overall, while Teleflex's receivables turnover ratios are within a reasonable range, management should monitor any further declines in this ratio and take necessary actions to improve receivables collection efficiency. This could involve implementing stricter credit policies, more proactive follow-up on overdue accounts, or renegotiating payment terms with customers.