Eaton Corporation PLC (ETN)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 23,106,000 | 22,505,000 | 21,868,000 | 21,178,000 | 20,562,000 | 19,970,000 | 20,218,000 | 20,349,000 | 20,114,000 | 20,118,000 | 19,180,000 | 17,774,000 | 18,008,000 | 18,475,000 | 19,163,000 | 20,776,000 | 21,229,000 | 21,373,000 | 21,496,000 | 26,924,000 |
| Receivables | US$ in thousands | 4,475,000 | 4,460,000 | 4,399,000 | 4,239,000 | 4,076,000 | 3,816,000 | 3,837,000 | 3,667,000 | 3,297,000 | 3,393,000 | 3,341,000 | 3,065,000 | 2,904,000 | 2,876,000 | 2,647,000 | 2,951,000 | 3,437,000 | 3,787,000 | 3,944,000 | 3,865,000 |
| Receivables turnover | 5.16 | 5.05 | 4.97 | 5.00 | 5.04 | 5.23 | 5.27 | 5.55 | 6.10 | 5.93 | 5.74 | 5.80 | 6.20 | 6.42 | 7.24 | 7.04 | 6.18 | 5.64 | 5.45 | 6.97 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $23,106,000K ÷ $4,475,000K
= 5.16
Over the past eight quarters, Eaton Corporation plc's receivables turnover ratio has exhibited a relatively stable trend, ranging between 5.01 and 5.39. This indicates that the company is efficient in collecting payments from its customers, on average, approximately five times a year. The consistency in the receivables turnover ratio suggests that Eaton has been effective in managing its accounts receivable and maintaining a swift cash conversion cycle. However, a closer examination of the trend over a longer period could provide more insights into any underlying changes in the effectiveness of the company's credit and collection policies.
Peer comparison
Dec 31, 2023