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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. Dr Reddy's Laboratories's Revenue for the
three
months ended in Jun. 2026 was €738 Mil. Dr Reddy's Laboratories's average Accounts Receivable for the
three
months ended in Jun. 2026 was €931 Mil.
Hence, Dr Reddy's Laboratories's Receivables Turnover for the
three
months ended in Jun. 2026 was 0.79.
Dr Reddy's Laboratories (FRA:RDDA) 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.
Dr Reddy's Laboratories Receivables Turnover Related Terms
Dr Reddy's Laboratories Receivables Turnover Historical Data
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The historical data trend for Dr Reddy's Laboratories'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.
Dr Reddy's Laboratories Receivables Turnover Chart
FRA:RDDA vs ZTS, UTHR: Receivables Turnover Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories'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.
Dr Reddy's Laboratories Receivables Turnover vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Receivables Turnover falls into.
* 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.
Dr Reddy's Laboratories (FRA:RDDA) has a Receivables Turnover of 0.79 as of Jun. 2026. The accounts 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. View historical data on Dr Reddy's Laboratories and its competitors. According to the industry distribution chart, Dr Reddy's Laboratories ranks #743 out of 949 companies in the Drug Manufacturers industry, placing it in the top 78.3%.
Is Dr Reddy's Laboratories' Receivables Turnover too high?
Dr Reddy's Laboratories' current Receivables Turnover is 0.79. The Drug Manufacturers industry median Receivables Turnover is 5.07. Dr Reddy's Laboratories' value of 0.79 is 84.4% below this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #743 out of 949 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Dr Reddy's Laboratories has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' Receivables Turnover compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #743 out of 949 companies for Receivables Turnover. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median Receivables Turnover is 5.07. Dr Reddy's Laboratories' value of 0.79 is 84.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Drug Manufacturers company?
The median Receivables Turnover among Drug Manufacturers companies is 5.07, based on 949 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current Receivables Turnover of 0.79 is 84.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts 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. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median Receivables Turnover is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current Receivables Turnover is 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Reddy's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dr Reddy's Laboratories (FRA:RDDA) is currently considered Modestly Undervalued. The stock's GF Value™ is €11.49, compared to a current price of €9.85 — trading 14.3% below its estimated fair value. The current Receivables Turnover is 0.79 and 84.4% below the Drug Manufacturers industry median of 5.07. Dr Reddy's Laboratories' overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Receivables Turnover is 0.79 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dr Reddy's Laboratories (FRA:RDDA) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of €9.85 is trading 14.3% below its estimated GF Value™ of €11.49.
GuruFocus considers Dr Reddy's Laboratories to be Modestly Undervalued.
Key valuation signals for FRA:RDDA:
Receivables Turnover: 0.79
GF Value™: €11.49 vs. price of €9.85 (14.3% below fair value)
Industry Position: 84.4% below the Drug Manufacturers median (#743 of 949)
No single metric tells the full story. See the FRA:RDDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly 40% of its generics sales, with other key markets being India (20%) and Europe (20%). Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.
92GF Score
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