Allegion PLC (ALLE)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,553,800 | 3,529,000 | 3,524,800 | 3,385,400 | 3,186,000 | 3,072,600 | 2,875,900 | 2,849,700 | 2,820,400 | 2,833,700 | 2,845,100 | 2,687,700 | 2,668,100 | 2,621,500 | 2,641,400 | 2,783,100 | 2,763,400 | 2,783,600 | 2,746,800 | 2,720,300 |
| Receivables | US$ in thousands | 421,700 | 439,700 | 423,200 | 445,000 | 395,600 | 422,500 | 333,300 | 324,300 | 283,300 | 307,400 | 316,900 | 312,600 | 321,800 | 350,900 | 329,200 | 343,100 | 329,800 | 367,500 | 380,000 | 359,600 |
| Receivables turnover | 8.43 | 8.03 | 8.33 | 7.61 | 8.05 | 7.27 | 8.63 | 8.79 | 9.96 | 9.22 | 8.98 | 8.60 | 8.29 | 7.47 | 8.02 | 8.11 | 8.38 | 7.57 | 7.23 | 7.56 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,553,800K ÷ $421,700K
= 8.43
The receivables turnover for Allegion plc has fluctuated over the past eight quarters, ranging from a low of 7.38 in Q3 2022 to a high of 8.93 in Q1 2022. Receivables turnover measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
In the last quarter of 2023 (Q4), the receivables turnover ratio was 8.84, showing an improvement from the previous quarter. This suggests that Allegion plc was able to collect its accounts receivable more efficiently in Q4 2023 compared to Q3 2023.
However, it's important to note that there was a slight dip in the receivables turnover ratio in Q1 2023 compared to the previous quarter, indicating potential issues with collections efficiency during that period. Overall, the trend in the receivables turnover ratio for Allegion plc has been relatively stable, with fluctuations within a moderate range, signifying a reasonable level of effectiveness in collecting accounts receivable.