Aptiv PLC (APTV)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,713,000 | 20,051,000 | 17,489,000 | 15,618,000 | 13,066,000 |
| Receivables | US$ in thousands | 3,557,000 | 3,815,000 | 3,648,000 | 3,032,000 | 3,016,000 |
| Receivables turnover | 5.54 | 5.26 | 4.79 | 5.15 | 4.33 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,713,000K ÷ $3,557,000K
= 5.54
Aptiv PLC's receivables turnover, which measures how efficiently the company is collecting payments from its customers, has shown a generally positive trend over the analyzed period.
From December 31, 2020, to December 31, 2024, the receivables turnover ratio has increased steadily from 4.33 to 5.54. This indicates that Aptiv PLC has been able to collect payments from its customers more frequently each year, improving its cash flow and reducing the risk of bad debts.
The upward trend in the receivables turnover ratio suggests that Aptiv PLC has been managing its accounts receivables effectively, possibly through efficient credit policies and prompt collection efforts. A higher receivables turnover ratio signifies that the company is converting its credit sales into cash at a faster rate, which is generally favorable for its liquidity and financial health.
Overall, the improving receivables turnover ratio for Aptiv PLC reflects positively on its operational efficiency and ability to manage its receivables effectively, which is crucial for maintaining a healthy cash flow and financial performance in the long run.
Peer comparison
Dec 31, 2024