Wave Life Sciences Ltd. Ordinary Shares(Wve) 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 WVE 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 '2023', WVE's receivables turnover was 10.75, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 2.34.
• In '2024', WVE's receivables turnover was 9.62, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.61. Industry average increased by 0.27 compared to previous year.
Overall, WVE's receivables turnover has consistently declined during the past 2 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.