Beam Therapeutics(Beam) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for BEAM compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', BEAM's receivables turnover was 0.35, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2021' stood at 2.22.
• In '2022', BEAM's receivables turnover was 0.41, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2022' stood at 2.41. Industry average increased by 0.19 compared to previous year.
Overall, BEAM's receivables turnover has steadily improved over the past 2 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.