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', NBIX's receivables turnover was 6.11, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2021' stood at 2.22.
• In '2022', NBIX's receivables turnover was 5.56, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. 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.
• In '2023', NBIX's receivables turnover was 4.78, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2023' stood at 2.11. Industry average declined by 0.30 from previous year.
• In '2024', NBIX's receivables turnover was 5.13, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2024' stood at 2.44. Industry average increased by 0.33 compared to previous year.
Overall, NBIX's receivables turnover has consistently declined during the past 4 years.

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

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