Thermo Fisher Scientific Inc (TMO)

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	41,415,000	42,229,000	42,518,000	42,979,000	44,225,000	42,978,000	41,676,000	40,005,000	37,933,000	38,365,000	37,540,000	35,169,000	31,689,000	28,090,000	25,821,000	25,176,000	25,008,000	24,686,000	24,336,000	24,109,000
Receivables	US$ in thousands	8,221,000	8,370,000	8,019,000	—	8,115,000	—	—	—	7,977,000	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover		5.04	5.05	5.30	—	5.45	—	—	—	4.76	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $41,415,000K ÷ $8,221,000K
= 5.04

Thermo Fisher Scientific Inc.'s receivables turnover, a measure of how efficiently the company is collecting its accounts receivable, has shown a relatively stable performance over the past eight quarters. The receivables turnover ratios ranged from 5.19 to 5.76, with the highest turnover reported in Q3 2022.

Overall, the company's ability to collect its outstanding receivables improved in the earlier quarters of 2022, but then fluctuated slightly in the subsequent quarters. A higher turnover ratio indicates that Thermo Fisher Scientific Inc. is converting its accounts receivable into cash more frequently, which is a positive sign of effective credit management and timely collection practices. However, the slight variations in the turnover ratios suggest that the company might have experienced some changes in its receivables collection efficiency during the period under review.

In conclusion, Thermo Fisher Scientific Inc.'s receivables turnover ratios have demonstrated a consistent trend, albeit with some fluctuations, indicating a generally efficient management of accounts receivable over the past eight quarters. Further analysis and consideration of other financial metrics would be necessary to gain a comprehensive understanding of the company's overall financial performance and liquidity management.