Plexus Corp (PLXS)

Receivables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	8,496,620	7,722,450	6,834,190	6,875,610	6,448,530
Receivables	US$ in thousands	661,542	737,696	519,684	482,086	488,284
Receivables turnover		12.84	10.47	13.15	14.26	13.21

September 30, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $8,496,620K ÷ $661,542K
= 12.84

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

Looking at Plexus Corp.'s receivables turnover over the past five years, we can observe a fluctuating trend. In September 2023, the receivables turnover ratio was 6.36, which represents an increase from the previous year's ratio of 5.17. This indicates that Plexus Corp. improved its efficiency in collecting receivables from customers during the most recent fiscal year.

Comparing the ratio to previous years, we see some variability. In 2021, the ratio was 6.48, similar to the current year, indicating consistent performance. However, in 2020, the receivables turnover ratio was higher at 7.03, suggesting that in that year, Plexus Corp. was collecting its receivables at a faster rate.

It's also important to note that the receivables turnover ratio of 6.48 in 2019 was similar to the current ratio, indicating consistent performance over the past two years.

Overall, while the receivables turnover ratio has shown some variability, it appears that Plexus Corp. has generally been effective in managing its accounts receivable and collecting payments from customers in a timely manner over the past five years. However, it would be beneficial to further investigate the reasons behind the fluctuations in the ratio to determine the underlying causes of the changes observed.