Allegion PLC (ALLE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,553,800 | 3,186,000 | 2,820,400 | 2,668,100 | 2,763,400 |
| Receivables | US$ in thousands | 421,700 | 395,600 | 283,300 | 321,800 | 329,800 |
| Receivables turnover | 8.43 | 8.05 | 9.96 | 8.29 | 8.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,553,800K ÷ $421,700K
= 8.43
The receivables turnover ratio for Allegion plc has been relatively stable over the past five years, with values ranging from 8.27 to 10.12. In particular, the ratio decreased slightly in 2022 before rebounding in 2023.
A higher receivables turnover ratio indicates that Allegion plc is collecting its accounts receivable more efficiently, as it reflects the number of times receivables are collected during the period. This suggests that the company is able to convert its credit sales into cash at a faster pace.
However, it is important to note that receivables turnover ratios can vary between industries and companies, and it is recommended to compare Allegion plc's ratio with industry benchmarks or competitors for a more comprehensive analysis of its receivables management efficiency.