PC Connection Inc (CNXN)
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 | 2,806,655 | 2,795,924 | 2,762,593 | 2,759,661 | 2,850,161 | 2,886,154 | 2,968,760 | 3,063,722 | 3,124,985 | 3,192,747 | 3,168,423 | 3,044,075 | 2,892,633 | 2,768,107 | 2,669,491 | 2,515,332 | 2,590,290 | 2,631,231 | 2,707,889 | 2,898,963 |
| Receivables | US$ in thousands | 672,127 | 592,164 | 608,107 | 530,577 | 664,035 | 594,985 | 601,679 | 621,844 | 667,776 | 646,656 | 643,953 | 634,142 | 655,143 | 585,380 | 581,656 | 554,696 | 677,641 | 588,960 | 446,716 | 486,704 |
| Receivables turnover | 4.18 | 4.72 | 4.54 | 5.20 | 4.29 | 4.85 | 4.93 | 4.93 | 4.68 | 4.94 | 4.92 | 4.80 | 4.42 | 4.73 | 4.59 | 4.53 | 3.82 | 4.47 | 6.06 | 5.96 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,806,655K ÷ $672,127K
= 4.18
The receivables turnover ratio is a measure of how efficiently a company is collecting its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Based on the provided data for PC Connection Inc, we can observe fluctuations in the receivables turnover ratio over the specified periods. The trend indicates variations in the company's ability to collect outstanding payments from customers.
The receivables turnover ratio ranged between 3.82 and 6.06 over the recorded periods. A higher turnover ratio in March 2020 and June 2020 suggested that PC Connection Inc was collecting its receivables relatively quickly during those quarters.
However, there was a decline in the ratio in subsequent quarters, reaching its lowest point of 3.82 in December 2020. This downturn may indicate potential challenges in collecting outstanding payments efficiently during that period.
The ratio gradually improved in the following quarters, with fluctuations observed but generally remaining between 4 and 5, indicating a moderate level of efficiency in receivables collection.
Overall, the analysis of PC Connection Inc's receivables turnover ratio suggests some variability in the company's ability to collect accounts receivable efficiently over the observed periods. Stakeholders may want to monitor this ratio closely to assess the company's effectiveness in managing its accounts receivable and cash flow.
Peer comparison
Dec 31, 2024