Johnson Controls International PLC (JCI)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 | 23,777,000 |
| Receivables | US$ in thousands | 6,077,000 | 5,791,000 | 5,811,000 | 5,599,000 | 6,878,000 |
| Receivables turnover | 4.39 | 4.35 | 4.11 | 3.99 | 3.46 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $26,703,000K ÷ $6,077,000K
= 4.39
The receivables turnover ratio measures the efficiency of a company in collecting outstanding receivables from its customers. It is calculated by dividing the total credit sales by the average accounts receivable for a specific period. A higher receivables turnover implies that the company is collecting its outstanding receivables more frequently, which is generally viewed as a positive indicator of efficient management of receivables.
Looking at the receivables turnover data for Johnson Controls International plc over the past five years, we can observe some fluctuation in the ratio. In 2023, the receivables turnover was 4.46, slightly lower than the 4.58 in 2022. This indicates a minor decrease in the speed of receivables collection from customers. However, it is important to note that the ratio is still within a relatively stable range.
In 2021, the receivables turnover was 4.22, which was the same as in 2020, and slightly higher than the 4.15 recorded in 2019. This suggests that the company has been consistent in its ability to collect receivables efficiently over these years.
Overall, a consistent or increasing trend in the receivables turnover ratio is generally a positive sign as it indicates that the company is effectively managing its credit sales and collecting receivables in a timely manner. However, a decreasing trend may signal a potential issue with collecting outstanding receivables, which warrants further investigation into the company's credit policies and customer payment behavior.
It is also important to analyze the receivables turnover in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Johnson Controls International plc's performance in managing its receivables.
Peer comparison
Sep 30, 2023