PC Connection Inc (CNXN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 | 2,819,820 |
| Receivables | US$ in thousands | 664,035 | 667,776 | 655,143 | 677,641 | 606,199 |
| Receivables turnover | 4.29 | 4.68 | 4.42 | 3.82 | 4.65 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,850,070K ÷ $664,035K
= 4.29
The receivables turnover ratio for PC Connection Inc has fluctuated over the past five years, ranging from 3.82 to 4.68 times. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more frequently within a given period, which can be a positive sign of efficient management of its credit sales and accounts receivable.
In 2023, the receivables turnover ratio decreased slightly to 4.29 times compared to the previous year's ratio of 4.68 times. This could suggest a potential slowing down in the collection of accounts receivable from customers. However, it is important to note that the ratio still remains relatively high, indicating that PC Connection Inc is efficiently managing its receivables turnover compared to earlier years like 2020.
Overall, monitoring the trend of the receivables turnover ratio can provide insights into the company's effectiveness in collecting outstanding payments from customers and managing its working capital efficiently.
Peer comparison
Dec 31, 2023