Photronics Inc (PLAB)

Receivables turnover

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	907,395	894,050	874,282	878,280	850,609	851,526	816,396	771,044	716,233	674,649	638,551	618,137	603,369	609,691	616,661	596,878	585,684	550,660	539,064	537,343
Receivables	US$ in thousands	232,158	221,832	206,128	214,464	220,692	200,861	206,495	—	170,673	198,660	—	—	139,708	151,009	—	—	—	—	—	—
Receivables turnover		3.91	4.03	4.24	4.10	3.85	4.24	3.95	—	4.20	3.40	—	—	4.32	4.04	—	—	—	—	—	—

January 28, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $907,395K ÷ $232,158K
= 3.91

The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher turnover ratio indicates that the company is able to quickly convert its accounts receivable into cash.

Based on the data provided for Photronics, Inc., the receivables turnover ratio has ranged from 3.83 to 4.58 over the past eight quarters. The variation in the ratio suggests some fluctuation in the company's receivables management efficiency during this period.

The average receivables turnover ratio for this period is approximately 4.12, indicating that, on average, Photronics, Inc. collects cash from its customers about four times a year. This suggests a generally effective accounts receivable management strategy, as the company is able to collect its outstanding receivables relatively quickly.

Overall, the trend in the receivables turnover ratio for Photronics, Inc. shows some consistency and indicates a reasonable level of efficiency in managing its accounts receivable. However, the company may benefit from further analysis to identify any potential areas for improvement in its receivables collection process.