Vicor Corporation (VICR)

Receivables turnover is a key indicator of how efficiently a company is managing its accounts receivable. The receivables turnover ratio for Vicor Corporation has shown some fluctuations over the past five years.

In 2020, the receivables turnover ratio was at a relatively high level of 14.49, indicating that Vicor was able to collect its accounts receivable approximately 14.49 times during the year. This suggests that the company had a strong ability to convert its credit sales into cash quickly.

However, in 2021, the receivables turnover ratio decreased to 13.05, still at a relatively strong level but slightly lower than the previous year. This could indicate a slightly slower collection of accounts receivable compared to the previous year.

The ratio experienced a significant decline in 2022, dropping to 6.12. Such a sharp decrease may suggest inefficiencies in collecting accounts receivable, possibly due to changes in the company's credit policies, customer payment behaviors, or operational challenges.

In 2023, there was a slight improvement in the receivables turnover ratio, increasing to 7.86. This uptick could indicate some efforts by Vicor to enhance its accounts receivable collection process or a shift in customer payment patterns.

By the end of 2024, the receivables turnover ratio was at 7.00, showing a slight decrease from the previous year. Although there was a marginal decrease, the ratio remained at a level that indicates the company's ability to efficiently recover its credit sales.

Overall, the varying trends in Vicor Corporation's receivables turnover ratio over the years highlight the importance of monitoring and managing accounts receivable effectively to maintain healthy cash flows and working capital management.

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Dec 31, 2024