Ziff Davis Inc (ZD)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,406,210 | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 |
| Receivables | US$ in thousands | 660,223 | 337,703 | 304,739 | 316,342 | 325,619 |
| Receivables turnover | 2.13 | 4.04 | 4.56 | 4.48 | 3.56 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,406,210K ÷ $660,223K
= 2.13
The receivables turnover ratio for Ziff Davis Inc has exhibited some fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The ratio was 3.56 in 2020 and showed an improvement to 4.48 in 2021. This indicates that the company collected its accounts receivable approximately 3.56 times and 4.48 times during the respective years.
There was a further increase in the ratio to 4.56 in 2022, suggesting a more efficient collection of receivables during that period. However, in 2023, the receivables turnover slightly decreased to 4.04, which could be an indication of potential issues in collecting receivables promptly.
The most notable change occurred in 2024, where the receivables turnover ratio dropped significantly to 2.13. This significant decline could imply that Ziff Davis Inc may have encountered challenges in collecting its accounts receivable efficiently or may have granted extended credit terms to customers.
Overall, while the company was able to improve its receivables turnover in some years, the sharp decline in 2024 raises some concerns about its accounts receivable management and collection efficiency. Further analysis and investigation into the reasons behind these fluctuations would be beneficial to assess the company's financial health accurately.