Zimmer Biomet Holdings Inc (ZBH)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,434,500	7,171,400	6,780,400	7,459,000	6,789,700
Receivables	US$ in thousands	1,480,700	1,442,400	1,381,500	1,404,900	1,452,700
Receivables turnover		5.02	4.97	4.91	5.31	4.67

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,434,500K ÷ $1,480,700K
= 5.02

The receivables turnover ratio of Zimmer Biomet Holdings Inc has shown a consistent upward trend over the past five years. In December 31, 2020, the ratio stood at 4.67, indicating that the company collected its accounts receivables approximately 4.67 times during that year.

By December 31, 2021, the receivables turnover ratio had improved to 5.31, suggesting that the company was able to convert its accounts receivables into cash more efficiently. The ratio slightly decreased to 4.91 by December 31, 2022, but remained relatively stable, indicating that Zimmer Biomet was still managing its receivables effectively.

In the following years, the company's receivables turnover ratio continued to maintain a positive trajectory, reaching 4.97 by December 31, 2023, and further increasing to 5.02 by December 31, 2024. These figures indicate that Zimmer Biomet was able to collect its outstanding receivables at a faster pace, reflecting strong credit control measures or efficient collection processes.

Overall, the increasing trend in Zimmer Biomet's receivables turnover ratio suggests that the company has been effectively managing its accounts receivables, improving its cash flow, and potentially reducing the risk of bad debts. However, it is important to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial performance.