Zimmer Biomet Holdings Inc (ZBH)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,434,500 | 7,373,400 | 7,289,700 | 7,214,600 | 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 |
| Receivables | US$ in thousands | 1,480,700 | 1,481,500 | 1,418,000 | 1,446,400 | 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 |
| Receivables turnover | 5.02 | 4.98 | 5.14 | 4.99 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,434,500K ÷ $1,480,700K
= 5.02
The receivables turnover ratio for Zimmer Biomet Holdings Inc shows a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 7.31 in March 31, 2020, indicating that the company turned over its accounts receivable approximately 7.31 times during that period.
The ratios decreased gradually over time, reaching a low of 4.71 by December 31, 2020, which may suggest a lengthening of the average collection period for the company’s receivables. This could potentially indicate issues with the company's credit policies or the collectability of its accounts receivable.
Subsequently, the ratios showed some recovery, peaking at 5.81 on March 31, 2022, before generally stabilizing around the range of 5.00 to 5.50 in the following periods up to December 31, 2024.
Overall, the trend in Zimmer Biomet Holdings Inc's receivables turnover ratio suggests variability in its ability to collect outstanding receivables efficiently. It would be important for the company to closely monitor and manage its accounts receivable collection process to ensure optimal cash flow and liquidity management.
Peer comparison
Dec 31, 2024