FTCHQ (Farfetch) Receivables Turnover: 1.13 (As of Jun. 2023)


FTCHQ Farfetch Ltd FTCHQ
12 GF Score
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What is Farfetch Receivables Turnover?

Farfetch FTCHQ -90.00% 12 Receivables Turnover is 1.13 as of Jun. 2023. GuruFocus rates FTCHQ with a GF Score™ of 12/100.

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. Farfetch's Revenue for the three months ended in Jun. 2023 was $572 Mil. Farfetch's average Accounts Receivable for the three months ended in Jun. 2023 was $508 Mil. Hence, Farfetch's Receivables Turnover for the three months ended in Jun. 2023 was 1.13.


Farfetch  (OTCPK:FTCHQ) 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.


Farfetch Receivables Turnover Related Terms


Farfetch Receivables Turnover Historical Data

* Premium members only.

The historical data trend for Farfetch'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.

Farfetch Receivables Turnover Chart

Farfetch Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Receivables Turnover
Get a 7-Day Free Trial 220.90 46.19 36.66 39.98 30.29

Farfetch Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 1.32 1.30 2.29 1.84 1.13

FTCHQ vs LQDT, FINR, OSTK: Receivables Turnover Comparison

For the Internet Retail subindustry, Farfetch'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.


Farfetch Receivables Turnover vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Farfetch's Receivables Turnover distribution charts can be found below:

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


FTCHQ
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Farfetch Ltd FTCHQ
Receivables Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Farfetch Receivables Turnover Calculation

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

Farfetch's Receivables Turnover for the fiscal year that ended in Dec. 2022 is calculated as

Receivables Turnover (A: Dec. 2022 )
=Revenue / Average Accounts Receivable
=Revenue (A: Dec. 2022 ) / ((Accounts Receivable (A: Dec. 2021 ) + Accounts Receivable (A: Dec. 2022 )) / count )
=2316.68 / ((63.046 + 89.942) / 2 )
=2316.68 / 76.494
=30.29

Farfetch's Receivables Turnover for the quarter that ended in Jun. 2023 is calculated as

Receivables Turnover (Q: Jun. 2023 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Jun. 2023 ) / ((Accounts Receivable (Q: Mar. 2023 ) + Accounts Receivable (Q: Jun. 2023 )) / count )
=572.086 / ((515.647 + 501.225) / 2 )
=572.086 / 508.436
=1.13

* 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.

Frequently Asked Questions Learn more about Receivables Turnover →
What does a Receivables Turnover of 1.13 mean?
Farfetch (FTCHQ) has a Receivables Turnover of 1.13 as of Jun. 2023. 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 Farfetch and its competitors.
Is Farfetch's Receivables Turnover too high?
Farfetch's current Receivables Turnover is 1.13. The Retail - Cyclical industry median Receivables Turnover is 19.39. Farfetch's value of 1.13 is 94.2% below this industry median. Overall, Farfetch has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Farfetch's Receivables Turnover compare to LQDT and FINR?
Farfetch's Receivables Turnover of 1.13 can be compared against companies in the Retail - Cyclical industry. The industry median Receivables Turnover is 19.39. Farfetch's value of 1.13 is 94.2% 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 Retail - Cyclical company?
The median Receivables Turnover among Retail - Cyclical companies is 19.39, based on 1,097 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. Farfetch's current Receivables Turnover of 1.13 is 94.2% 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 Farfetch and its competitors. For the Retail - Cyclical industry, the median Receivables Turnover is 19.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Farfetch's current Receivables Turnover is 1.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farfetch stock overvalued right now?
Farfetch (FTCHQ) has a current Receivables Turnover of 1.13. The current Receivables Turnover is 1.13 and 94.2% below the Retail - Cyclical industry median of 19.39. Farfetch's overall GF Score™ is 12/100. 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 Farfetch (FTCHQ), the current Receivables Turnover is 1.13 as of Jun. 2023. 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.

Farfetch Business Description

Address The Bower, 211 Old Street, London, GBR, EC1V 9NR
Farfetch Ltd is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.
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