Photronics Inc (PLAB)

Receivables turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Revenue	US$ in thousands	894,116	851,354	674,648	609,090	549,360
Receivables	US$ in thousands	221,832	200,861	198,660	151,009	134,454
Receivables turnover		4.03	4.24	3.40	4.03	4.09

October 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $894,116K ÷ $221,832K
= 4.03

The receivables turnover ratio measures how efficiently a company collects its accounts receivable during a period. A higher receivables turnover indicates that the company is collecting its outstanding receivables more quickly.

Photronics, Inc.'s receivables turnover has shown variations over the past five years, ranging from 3.80 to 4.58. The increasing trend in the ratio from 2021 to 2023 indicates that the company has been improving its ability to collect receivables more efficiently.

In 2023, the receivables turnover ratio reached 4.58, which signifies that, on average, Photronics, Inc. collected its outstanding receivables approximately 4.58 times during the year. This suggests an improvement in the company's collection process and potential liquidity management.

While an increasing turnover ratio generally reflects effective credit policies and efficient collection efforts, it's essential to consider industry benchmarks and compare the company's performance with its peers to gain a comprehensive understanding of its receivables management efficiency.