Viomi Technology Co. Ltd(Viot) 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 VIOT 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 '2020', VIOT's receivables turnover was 5.18, showing efficiency in collecting outstanding receivables. Industry average for Consumer Electronics/Appliances in '2020' stood at 3.34.
• In '2021', VIOT's receivables turnover was 5.78, showing efficiency in collecting outstanding receivables. The increase since '2020' reflects strengthening financial performance. Industry average for Consumer Electronics/Appliances in '2021' stood at 5.47. Industry average increased by 2.13 compared to previous year.
• In '2022', VIOT's receivables turnover was 4.83, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Consumer Electronics/Appliances in '2022' stood at 5.14. Industry average declined by 0.33 from previous year.
• In '2023', VIOT's receivables turnover was 4.23, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Consumer Electronics/Appliances in '2023' stood at 4.28. Industry average declined by 0.86 from previous year.
Overall, VIOT'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.