Eaton Corporation PLC (ETN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,107,000 | 20,562,000 | 20,114,000 | 18,008,000 | 21,230,000 |
| Receivables | US$ in thousands | 4,475,000 | 4,076,000 | 3,297,000 | 2,904,000 | 3,437,000 |
| Receivables turnover | 5.16 | 5.04 | 6.10 | 6.20 | 6.18 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $23,107,000K ÷ $4,475,000K
= 5.16
The receivables turnover ratio for Eaton Corporation plc has been relatively stable over the past five years, ranging from 5.09 to 6.22. This ratio indicates how efficiently the company is collecting payments from its customers. A higher turnover ratio typically suggests that the company is collecting its accounts receivable more quickly.
In this case, the receivables turnover ratio has slightly decreased from 6.22 in 2019 to 5.18 in 2023. While the ratio has fluctuated slightly over the years, it remains within a reasonably consistent range, indicating that Eaton Corporation plc has been effectively managing its accounts receivable turnover.
It is important for investors and analysts to continue monitoring the receivables turnover ratio to assess changes in the company's ability to collect payments promptly and efficiently.
Peer comparison
Dec 31, 2023