Veracyte Inc (VCYT)

Receivables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Receivables US$ in thousands 46,525 40,378 44,021 41,461 18,461
Receivables turnover 9.58 8.94 6.74 5.29 6.36

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $445,764K ÷ $46,525K
= 9.58

The receivables turnover ratio for Veracyte Inc. demonstrates a positive trend over the period spanning December 31, 2020, to December 31, 2024. Specifically, the ratio increased from 6.36 times in 2020 to 8.94 times in 2023, indicating an improvement in the company's ability to collect its accounts receivable more efficiently. This upward movement suggests enhanced credit management and faster conversion of receivables into cash.

The ratio further progressed to 9.58 times by December 31, 2024, reflecting continued efficiency gains in receivables collection. An increasing receivables turnover ratio generally signifies shorter collection periods, which can contribute positively to the company's liquidity position. Overall, the trend indicates that Veracyte Inc. has been increasingly effective in managing its receivables, leading to more rapid cash inflows relative to its outstanding receivables over the analyzed period.