PHINIA Inc. (PHIN)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,445,000 | 3,494,000 | 3,542,000 |
| Receivables | US$ in thousands | 817,000 | 920,000 | 1,023,000 |
| Receivables turnover | 4.22 | 3.80 | 3.46 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,445,000K ÷ $817,000K
= 4.22
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables during a specific period. For PHINIA Inc., the trend in receivables turnover over the last three reported periods shows an improvement.
In March 31, 2024, the receivables turnover was 3.46, indicating that the company collected its outstanding receivables approximately 3.46 times during that period. By September 30, 2024, the ratio increased to 3.80, suggesting a slight improvement in the company's receivables management efficiency.
However, the most significant improvement was observed by December 31, 2024, where the receivables turnover ratio further increased to 4.22. This indicates that PHINIA Inc. enhanced its collection capabilities and could convert its receivables into cash more frequently throughout the period.
The increasing trend in receivables turnover suggests that PHINIA Inc. has been managing its receivables effectively, potentially improving its liquidity position and reducing the risk of bad debts. However, further analysis in conjunction with other financial metrics would provide a more comprehensive understanding of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024