Ziff Davis Inc (ZD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Receivables | US$ in thousands | 337,703 | 304,739 | 316,342 | 325,619 | 261,928 |
| Receivables turnover | 4.04 | 4.56 | 4.48 | 3.56 | 4.01 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,364,030K ÷ $337,703K
= 4.04
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates better efficiency in collecting payments and managing accounts receivable.
In the case of Ziff Davis Inc, the trend of the receivables turnover ratio over the past five years has shown some fluctuations. The receivables turnover ratio decreased from 5.24 in 2019 to 4.57 in 2020, indicating a slight decrease in efficiency in collecting payments from customers. However, the ratio increased slightly to 4.48 in 2021, followed by a further increase to 4.56 in 2022. The most recent ratio for 2023 is 4.04, showing a decline in efficiency compared to the previous year.
Overall, Ziff Davis Inc has shown relatively consistent performance in managing its accounts receivable, with the ratio hovering around the range of 4.04 to 5.24 over the past five years. Further analysis would be required to understand the reasons behind the fluctuations in the receivables turnover ratio and to determine if any actions are needed to improve the efficiency of receivables management in the company.