Receivables turnover (Receivable turns)
How many times a year the company collects its outstanding customer invoices.
Falling turnover means customers are paying more slowly, which is either a credit problem or channel stuffing.
How it is computed here
Revenue / accounts receivable
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- A year-end snapshot, so a big December sale distorts it.
- Factoring receivables removes them from the balance sheet and improves this number artificially.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is receivables turnover calculated?
Revenue / accounts receivable. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does receivables turnover tell a value investor?
Falling turnover means customers are paying more slowly, which is either a credit problem or channel stuffing.
When does receivables turnover mislead?
A year-end snapshot, so a big December sale distorts it. Factoring receivables removes them from the balance sheet and improves this number artificially.