Wolfspeed Inc (WOLF)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	807,400	878,100	699,200	478,000	880,600
Receivables	US$ in thousands	198,800	172,700	289,900	112,400	120,600
Receivables turnover		4.06	5.08	2.41	4.25	7.30

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $807,400K ÷ $198,800K
= 4.06

The receivables turnover ratio indicates how efficiently Wolfspeed Inc is collecting payments from its customers. A higher turnover ratio suggests that the company is collecting its accounts receivable more quickly.

Looking at the trend over the past five years, we observe fluctuations in the receivables turnover ratio. In Jun 2020, the ratio was substantially high at 7.30, indicating that the company was collecting its receivables at a rapid pace. However, this ratio decreased in the following years, reaching its lowest point in Jun 2022 at 2.41, which could imply slower collections during that period.

In the most recent year, Jun 2024, the receivables turnover ratio improved to 4.06 compared to the previous year, suggesting a more efficient collection process. This increase may indicate that Wolfspeed Inc has made efforts to tighten its credit policies, streamline collection procedures, or improve customer creditworthiness.

Overall, the analysis of Wolfspeed Inc's receivables turnover ratio demonstrates fluctuations over the years, with a recent improvement indicating enhanced efficiency in collecting accounts receivable. Further examination of the company's receivables management practices and industry benchmarks could provide additional insights into its financial performance and liquidity management.