Amphenol Corporation (APH)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,222,700 | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 |
| Receivables | US$ in thousands | 3,287,900 | 2,618,400 | 2,631,300 | 2,454,800 | 1,951,600 |
| Receivables turnover | 4.63 | 4.79 | 4.80 | 4.43 | 4.41 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,222,700K ÷ $3,287,900K
= 4.63
The receivables turnover for Amphenol Corporation has been relatively stable over the past five years, ranging from 4.41 to 4.80. This indicates that, on average, the company collects its accounts receivable approximately 4.41 to 4.80 times per year.
A higher receivables turnover ratio is generally favorable as it suggests that the company is efficiently managing its receivables and collecting payments from customers in a timely manner. The slight increase in the receivables turnover ratio from 2020 to 2024 indicates an improvement in the company's effectiveness in converting its receivables into cash.
However, it is important to note that the receivables turnover ratio should be analyzed in conjunction with other financial metrics to get a comprehensive understanding of Amphenol Corporation's overall financial health and performance.