nVent Electric PLC (NVT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,195,600 | 2,877,800 | 2,414,500 | 1,962,200 | 2,159,300 |
| Receivables | US$ in thousands | -15,000 | -9,900 | -6,700 | -6,200 | -5,400 |
| Receivables turnover | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,195,600K ÷ $-15,000K
= —
The receivables turnover ratio for nVent Electric plc has shown some fluctuations over the past five years. In 2023, the ratio was 5.54, indicating that, on average, the company collected its accounts receivable approximately 5.54 times during the year. This was a slight decrease from the previous year's ratio of 6.16.
The downward trend in receivables turnover from 2020 to 2023 suggests that the company might be taking longer to collect its receivables compared to previous years. A lower turnover ratio could imply potential issues with collecting payments from customers efficiently or changes in the company's credit policies.
Despite the recent decrease, nVent Electric plc's receivables turnover remains relatively stable compared to earlier years, such as 2019 when the ratio was 6.59. It is essential for the company to monitor this ratio closely to ensure that receivables are collected promptly and efficiently, as a low turnover ratio could tie up cash flow and impact the company's liquidity.
Peer comparison
Dec 31, 2023