TechTarget Inc (TTGT)

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	246,651	261,716	274,067	290,615	298,349	277,902	270,151	255,484	240,152	231,041	197,824	169,385	148,059	138,065	135,130	134,377	133,265	128,516	125,496	122,291
Receivables	US$ in thousands	39,239	43,342	50,988	51,375	60,359	60,720	60,176	51,009	51,095	45,528	39,718	37,589	40,183	24,380	25,568	23,554	27,102	24,643	27,075	25,250
Receivables turnover		6.29	6.04	5.38	5.66	4.94	4.58	4.49	5.01	4.70	5.07	4.98	4.51	3.68	5.66	5.29	5.71	4.92	5.22	4.64	4.84

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $246,651K ÷ $39,239K
= 6.29

Techtarget Inc.'s receivables turnover has shown a generally consistent trend over the past eight quarters. The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales within a given period. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.

In the last quarter of 2023, Techtarget Inc.'s receivables turnover was 5.86, which was higher than the previous quarter but lower than the peak in Q2 2023. This suggests that the company was able to collect its outstanding receivables more efficiently in Q4 2023 compared to the previous quarter.

Overall, Techtarget Inc. has maintained a relatively stable receivables turnover ratio over the past two years, ranging between 4.88 and 5.86. This indicates that the company has been effective in managing its accounts receivable and collecting payments from customers in a timely manner.

A consistently high receivables turnover ratio may reflect favorable credit policies, strong customer relationships, or efficient collection procedures. Conversely, a declining ratio may raise concerns about the company's credit risk or collection practices.

It is important for stakeholders to monitor changes in the receivables turnover ratio over time to assess the company's ability to effectively manage its accounts receivable and maintain healthy cash flows.