Aptiv PLC (APTV)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,713,000 | 19,725,000 | 19,985,000 | 20,134,000 | 20,051,000 | 19,772,000 | 19,272,000 | 18,129,000 | 17,489,000 | 16,983,000 | 16,023,000 | 15,773,000 | 15,618,000 | 15,696,000 | 15,710,000 | 13,863,000 | 13,066,000 | 12,450,000 | 12,341,000 | 14,008,000 |
| Receivables | US$ in thousands | 3,557,000 | 3,936,000 | 3,883,000 | 3,920,000 | 3,815,000 | 3,864,000 | 3,979,000 | 3,793,000 | 3,648,000 | 3,606,000 | 3,304,000 | 3,313,000 | 3,032,000 | 2,954,000 | 2,928,000 | 3,048,000 | 3,016,000 | 2,920,000 | 2,091,000 | 2,567,000 |
| Receivables turnover | 5.54 | 5.01 | 5.15 | 5.14 | 5.26 | 5.12 | 4.84 | 4.78 | 4.79 | 4.71 | 4.85 | 4.76 | 5.15 | 5.31 | 5.37 | 4.55 | 4.33 | 4.26 | 5.90 | 5.46 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,713,000K ÷ $3,557,000K
= 5.54
The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. It is calculated by dividing the total credit sales by the average accounts receivable balance.
Looking at the receivables turnover data for Aptiv PLC from March 31, 2020, to December 31, 2024, we can observe fluctuations in the ratio over time. The ratio ranged between 4.26 to 5.90 during this period.
In the initial period, from March 31, 2020, to June 30, 2021, there was an overall increasing trend in the receivables turnover ratio, indicating that Aptiv was more efficient in collecting payments from customers during this time.
However, starting from the third quarter of 2021, the ratio began to fluctuate within a narrower range, with values oscillating between 4.71 to 5.54. This could suggest some variability in Aptiv's collection practices or changes in the credit policy affecting the accounts receivable turnover.
Overall, a higher receivables turnover ratio is generally preferred as it indicates that the company is collecting payments from customers more quickly. A consistent and improving trend in this ratio is a positive sign of the company's efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2024