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LinkedIn (FRA:LKI) Receivables Turnover : 1.74 (As of Sep. 2016)


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What is LinkedIn Receivables Turnover?

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. LinkedIn's Revenue for the three months ended in Sep. 2016 was €855 Mil. LinkedIn's average Accounts Receivable for the three months ended in Sep. 2016 was €491 Mil. Hence, LinkedIn's Receivables Turnover for the three months ended in Sep. 2016 was 1.74.


LinkedIn Receivables Turnover Historical Data

The historical data trend for LinkedIn's Receivables Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LinkedIn Receivables Turnover Chart

LinkedIn Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Receivables Turnover
Get a 7-Day Free Trial 6.17 6.18 5.94 6.15 5.98

LinkedIn Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Receivables Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.72 1.65 1.44 1.62 1.74

Competitive Comparison of LinkedIn's Receivables Turnover

For the Internet Content & Information subindustry, LinkedIn's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LinkedIn's Receivables Turnover Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, LinkedIn's Receivables Turnover distribution charts can be found below:

* The bar in red indicates where LinkedIn's Receivables Turnover falls into.



LinkedIn Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

LinkedIn's Receivables Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Receivables Turnover (A: Dec. 2015 )
=Revenue / Average Total Inventories
=Revenue (A: Dec. 2015 ) / ((Accounts Receivable (A: Dec. 2014 ) + Accounts Receivable (A: Dec. 2015 )) / count )
=2745.656 / ((364.178 + 553.609) / 2 )
=2745.656 / 458.8935
=5.98

LinkedIn's Receivables Turnover for the quarter that ended in Sep. 2016 is calculated as

Receivables Turnover (Q: Sep. 2016 )
=Revenue / Average Total Inventories
=Revenue (Q: Sep. 2016 ) / ((Accounts Receivable (Q: Jun. 2016 ) + Accounts Receivable (Q: Sep. 2016 )) / count )
=855.17 / ((498.792 + 482.321) / 2 )
=855.17 / 490.5565
=1.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


LinkedIn  (FRA:LKI) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.


LinkedIn Receivables Turnover Related Terms

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LinkedIn (FRA:LKI) Business Description

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LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.

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