PC Connection Inc (CNXN)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,802,060 | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 |
| Receivables | US$ in thousands | 672,127 | 664,035 | 667,776 | 655,143 | 677,641 |
| Receivables turnover | 4.17 | 4.29 | 4.68 | 4.42 | 3.82 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,802,060K ÷ $672,127K
= 4.17
The receivables turnover ratio measures how efficiently PC Connection Inc is able to collect payment on its credit sales within a given period. Looking at the data provided, we observe an upward trend in the receivables turnover ratio over the years.
In December 2020, the receivables turnover ratio was 3.82, indicating that PC Connection Inc collected payments approximately 3.82 times during that year. This ratio increased to 4.42 in December 2021, further improved to 4.68 in December 2022, signaling that the company was able to speed up its collection process.
However, there was a slight decline in the receivables turnover ratio in December 2023 to 4.29, followed by a further decrease to 4.17 in December 2024. Despite these declines, the ratios remain at relatively high levels, indicating that PC Connection Inc is still efficiently collecting its receivables compared to the beginning of the observed period.
Overall, the increasing trend in the receivables turnover ratio from 2020 to 2022 reflects the company's effectiveness in managing its accounts receivable. Despite some fluctuations in the later years, the ratios suggest that PC Connection Inc has been successful in converting its credit sales into cash, showcasing a solid performance in this aspect of its operations.
Peer comparison
Dec 31, 2024