Varex Imaging Corp (VREX)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 893,400 | 859,400 | 818,100 | 738,300 | 780,600 |
| Receivables | US$ in thousands | 163,600 | 173,300 | 155,300 | 123,800 | 141,000 |
| Receivables turnover | 5.46 | 4.96 | 5.27 | 5.96 | 5.54 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $893,400K ÷ $163,600K
= 5.46
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by indicating how many times a company collects its average accounts receivable balance during a specific period. A higher receivables turnover ratio generally indicates a more efficient and effective credit and collections process.
Analyzing Varex Imaging Corp's receivables turnover over the past five years, we observe fluctuations in the ratio. From 2019 to 2020, the ratio decreased from 5.54 to 5.96, indicating a slight decline in the efficiency of collecting accounts receivable. However, from 2020 to 2021, the ratio improved to 5.27, signifying a more effective collections process.
In the most recent two years, from 2021 to 2023, Varex Imaging Corp saw an increase in receivables turnover, reaching 5.46 in 2023. This suggests that the company has been able to collect its accounts receivable more frequently and efficiently during these years.
Overall, Varex Imaging Corp's receivables turnover has shown some fluctuations over the past five years, but the recent trend indicates an improvement in the efficiency of managing its accounts receivable, which is a positive sign for the company's financial health and liquidity.
Peer comparison
Sep 30, 2023