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', ELMD's receivables turnover was 2.05, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2021' stood at 4.69.
• In '2022', ELMD's receivables turnover was 2.15, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2022' stood at 4.45. Industry average declined by 0.24 from previous year.
• In '2023', ELMD's receivables turnover was 2.09, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2023' stood at 4.50. Industry average increased by 0.05 compared to previous year.
• In '2024', ELMD's receivables turnover was 2.25, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Electromedical & Electrotherapeutic Apparatus in '2024' stood at 4.86. Industry average increased by 0.36 compared to previous year.
Overall, ELMD's receivables turnover has steadily improved over the past 4 years.

Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable

Good Range: Ranges 5 to 15 depending on credit terms.