United Therapeutics Corporation (UTHR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,268,200 | 1,903,900 | 1,666,900 | 1,483,300 | 1,448,800 |
| Receivables | US$ in thousands | 278,900 | 220,400 | 198,700 | 157,400 | 151,400 |
| Receivables turnover | 8.13 | 8.64 | 8.39 | 9.42 | 9.57 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,268,200K ÷ $278,900K
= 8.13
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. In the case of United Therapeutics Corp, the trend of the receivables turnover over the past five years has shown a slight decline from 9.57 in 2019 to 8.35 in 2023.
A higher receivables turnover ratio indicates that the company is able to collect its outstanding receivables more quickly, which is generally viewed as a positive sign of operational efficiency. Conversely, a decreasing ratio could suggest potential issues such as delayed collections, credit risks, or changes in customer payment behavior.
It is important for United Therapeutics Corp to closely monitor its receivables turnover ratio to ensure timely collection of receivables and efficient management of cash flow. By analyzing trends in this ratio over time, the company can identify any areas of improvement in its accounts receivable processes and overall financial performance.
Peer comparison
Dec 31, 2023