Afterpay (Afterpay) Receivables Turnover : 0.36 (As of Jun. 2021)

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What is Afterpay 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. Afterpay's Revenue for the six months ended in Jun. 2021 was $387.7 Mil. Afterpay's average Accounts Receivable for the six months ended in Jun. 2021 was $1,088.7 Mil. Hence, Afterpay's Receivables Turnover for the six months ended in Jun. 2021 was 0.36.

Afterpay Receivables Turnover Historical Data

The historical data trend for Afterpay'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.

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Afterpay Receivables Turnover Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Receivables Turnover

0.28

0.79

0.70

0.80

0.81

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
Receivables Turnover	Get a 7-Day Free Trial				0.34	0.35	0.38	0.40	0.36

Competitive Comparison of Afterpay's Receivables Turnover

For the Software - Infrastructure subindustry, Afterpay'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.

Afterpay's Receivables Turnover Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's Receivables Turnover distribution charts can be found below:

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

Afterpay Receivables Turnover Calculation

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

Afterpay's Receivables Turnover for the fiscal year that ended in Jun. 2021 is calculated as

	Receivables Turnover (A: Jun. 2021 )
=	Revenue	/	Average Total Inventories
=	Revenue (A: Jun. 2021 )	/ (	(Accounts Receivable (A: Jun. 2020 )	+	Accounts Receivable (A: Jun. 2021 ))	/	count )
=	706.622	/ (	(563.041	+	1187.826)	/	2 )
=	706.622	/	875.4335
=	0.81

Afterpay's Receivables Turnover for the quarter that ended in Jun. 2021 is calculated as

	Receivables Turnover (Q: Jun. 2021 )
=	Revenue	/	Average Total Inventories
=	Revenue (Q: Jun. 2021 )	/ (	(Accounts Receivable (Q: Dec. 2020 )	+	Accounts Receivable (Q: Jun. 2021 ))	/	count )
=	387.657	/ (	(989.498	+	1187.826)	/	2 )
=	387.657	/	1088.662
=	0.36

Afterpay (OTCPK:AFTPY) 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.

Afterpay Receivables Turnover Related Terms

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Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » Receivables Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.