VeriSign Inc (VRSN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,493,100 | 1,424,900 | 1,327,600 | 1,265,100 | 1,231,660 |
| Receivables | US$ in thousands | 6,300 | 6,200 | 5,284 | 4,642 | 16,245 |
| Receivables turnover | 237.00 | 229.82 | 251.25 | 272.53 | 75.82 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,493,100K ÷ $6,300K
= 237.00
The receivables turnover ratio reflects how efficiently Verisign Inc. is collecting its outstanding receivables from customers.
Verisign's receivables turnover has shown variability over the past five years, ranging from a high of 175.91 in 2022 to a low of 70.96 in 2019. A higher receivables turnover ratio indicates that Verisign is collecting its accounts receivable more frequently during the year, which is generally seen as a positive sign of effective credit management and prompt collection efforts.
In 2023, the receivables turnover ratio decreased to 109.79 from the previous year's high of 175.91, suggesting that Verisign took longer to collect its outstanding receivables in 2023 compared to 2022. This might be due to changes in customer credit policies, delays in collections, or changes in sales volume.
Overall, while the 2023 receivables turnover ratio is lower than the previous year, it is still relatively high, indicating that Verisign continues to manage its accounts receivable efficiently, although there may be room for improvement in optimizing its collection processes.
Peer comparison
Dec 31, 2023