Amphenol Corporation (APH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 | 8,225,400 |
| Receivables | US$ in thousands | 2,618,400 | 2,631,300 | 2,454,800 | 1,951,600 | 1,736,400 |
| Receivables turnover | 4.79 | 4.80 | 4.43 | 4.41 | 4.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,554,700K ÷ $2,618,400K
= 4.79
The receivables turnover ratio for Amphenol Corp. has been relatively stable over the past five years, ranging from 4.41 in 2020 to 4.80 in 2022. This ratio measures how effectively the company is able to collect its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more frequently.
The slight fluctuations in the receivables turnover ratio over the years suggest that Amphenol Corp. has been consistent in managing its accounts receivable efficiently. A consistent high turnover ratio indicates that the company is effectively managing its credit policies and collecting outstanding receivables in a timely manner.
Overall, the stable and relatively high receivables turnover ratio of Amphenol Corp. demonstrates that the company has been successful in efficiently converting its credit sales into cash, which is a positive indicator of its financial health and management effectiveness.