Zimmer Biomet Holdings Inc (ZBH)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	7,171,500	7,054,100	6,993,800	6,933,800	6,780,400	6,827,800	7,061,000	7,290,300	7,452,200	7,716,200	7,722,600	6,923,200	6,840,900	6,881,300	6,840,200	7,596,700	7,805,400	7,750,700	7,677,500	7,646,100
Receivables	US$ in thousands	1,442,400	1,340,700	1,367,300	1,380,900	1,381,500	1,278,500	1,282,100	1,254,200	1,404,900	1,392,000	1,420,400	1,380,200	1,452,700	1,340,700	1,064,500	1,039,100	1,363,900	1,150,800	1,247,100	1,225,300
Receivables turnover		4.97	5.26	5.12	5.02	4.91	5.34	5.51	5.81	5.30	5.54	5.44	5.02	4.71	5.13	6.43	7.31	5.72	6.74	6.16	6.24

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,171,500K ÷ $1,442,400K
= 4.97

The receivables turnover ratio for Zimmer Biomet Holdings Inc has been relatively stable over the past eight quarters, ranging from 5.02 to 6.10. This ratio measures the number of times a company collects its average accounts receivable balance during a period, indicating how efficiently the company is managing its credit sales and collecting payments from customers.

A higher receivables turnover ratio generally indicates that the company is collecting its accounts receivable more quickly, which is favorable as it implies better liquidity and more efficient operations. Zimmer Biomet's receivables turnover has generally been above 5 times, suggesting that the company has been effectively managing its receivables.

However, it's worth noting that the ratio has shown a slight decline in recent quarters, with a modest downward trend from Q2 2022 to Q4 2023. This could be a signal that the company may be taking longer to collect payments from customers, which may warrant further investigation into the company's credit policies and collection practices to ensure efficient cash flow management.