Gemfields (LSE:GEMA) Receivables Turnover: 2.04 (As of Dec. 2016)

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What is Gemfields Receivables Turnover?

Gemfields LSE:GEMA Receivables Turnover is 2.04 as of Dec. 2016. The stock has 4 warning signs investors should review.

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. Gemfields's Revenue for the six months ended in Dec. 2016 was £40.89 Mil. Gemfields's average Accounts Receivable for the six months ended in Dec. 2016 was £20.05 Mil. Hence, Gemfields's Receivables Turnover for the six months ended in Dec. 2016 was 2.04.


Gemfields  (LSE:GEMA) 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.


Gemfields Receivables Turnover Related Terms


Gemfields Receivables Turnover Historical Data

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The historical data trend for Gemfields'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.

Gemfields Receivables Turnover Chart

Gemfields Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 143.35 49.82 19.62 10.48 10.46

Gemfields Semi-Annual Data
Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
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 5.62 3.27 3.10 3.30 2.04

Gemfields Receivables Turnover Competitor Comparison

For the Other Precious Metals & Mining subindustry, Gemfields'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.


Gemfields Receivables Turnover vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Gemfields's Receivables Turnover distribution charts can be found below:

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



Gemfields Receivables Turnover Calculation

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

Gemfields's Receivables Turnover for the fiscal year that ended in Jun. 2016 is calculated as

Receivables Turnover (A: Jun. 2016 )
=Revenue / Average Accounts Receivable
=Revenue (A: Jun. 2016 ) / ((Accounts Receivable (A: Jun. 2015 ) + Accounts Receivable (A: Jun. 2016 )) / count )
=135.971 / ((12.122 + 13.867) / 2 )
=135.971 / 12.9945
=10.46

Gemfields's Receivables Turnover for the quarter that ended in Dec. 2016 is calculated as

Receivables Turnover (Q: Dec. 2016 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Dec. 2016 ) / ((Accounts Receivable (Q: Jun. 2016 ) + Accounts Receivable (Q: Dec. 2016 )) / count )
=40.888 / ((13.867 + 26.241) / 2 )
=40.888 / 20.054
=2.04

* 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 2.04 mean?
Gemfields (LSE:GEMA) has a Receivables Turnover of 2.04 as of Dec. 2016. 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 Gemfields and its competitors.
Is Gemfields' Receivables Turnover too high?
Gemfields' current Receivables Turnover is 2.04. The Metals & Mining industry median Receivables Turnover is 9.43. Gemfields' value of 2.04 is 78.4% below this industry median.
How does Gemfields' Receivables Turnover compare to competitors?
Gemfields' Receivables Turnover of 2.04 can be compared against companies in the Metals & Mining industry. The industry median Receivables Turnover is 9.43. Gemfields' value of 2.04 is 78.4% 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 Metals & Mining company?
The median Receivables Turnover among Metals & Mining companies is 9.43, based on 779 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. Gemfields's current Receivables Turnover of 2.04 is 78.4% 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 Gemfields and its competitors. For the Metals & Mining industry, the median Receivables Turnover is 9.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemfields's current Receivables Turnover is 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields stock overvalued right now?
Gemfields (LSE:GEMA) has a current Receivables Turnover of 2.04. The current Receivables Turnover is 2.04 and 78.4% below the Metals & Mining industry median of 9.43. 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 Gemfields (LSE:GEMA), the current Receivables Turnover is 2.04 as of Dec. 2016. 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.

Gemfields Business Description

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR
Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.