Photronics Inc (PLAB)

Receivables turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Revenue	US$ in thousands	869,022	894,116	851,354	674,648	609,090
Receivables	US$ in thousands	232,729	221,832	200,861	198,660	151,009
Receivables turnover		3.73	4.03	4.24	3.40	4.03

October 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $869,022K ÷ $232,729K
= 3.73

The receivables turnover ratio measures how efficiently a company collects cash from its credit customers. In the case of Photronics Inc, the trend of the receivables turnover ratio over the past five years shows some fluctuations.

In particular, the ratio decreased from 4.03 in 2020 to 3.40 in 2021, indicating a potential inefficiency in collecting receivables during that fiscal year. However, there was an improvement in 2022 with the ratio increasing to 4.24, suggesting enhanced efficiency in receivables management. Subsequently, in 2023, the ratio declined slightly to 4.03 but remained relatively stable compared to the previous year.

Looking at the most recent data for 2024, the receivables turnover decreased further to 3.73. This decline may indicate a slower collection of accounts receivable compared to the previous year, which could be a concern if not addressed promptly.

Overall, while there have been fluctuations in the receivables turnover ratio over the past five years, it is essential for Photronics Inc to closely monitor its receivables management practices to ensure timely collections and maintain healthy cash flow in the future.