Philip Morris International Inc (PM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,808,000 | 115,302,000 | 116,285,000 | 107,266,000 | 110,502,000 |
| Receivables | US$ in thousands | 4,391,000 | 5,444,000 | 4,458,000 | 4,126,000 | 4,240,000 |
| Receivables turnover | 7.70 | 21.18 | 26.08 | 26.00 | 26.06 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $33,808,000K ÷ $4,391,000K
= 7.70
The receivables turnover ratio for Philip Morris International Inc has been relatively consistent over the past five years, ranging from 6.68 to 8.02 times. This ratio indicates how efficiently the company is collecting on credit sales from its customers. A higher receivables turnover ratio generally suggests that the company is collecting its receivables more quickly, which is a positive sign of strong cash flow management.
The slight fluctuations in the receivables turnover ratio over the years may be attributed to changes in the company's credit policies, customer payment behavior, or overall economic conditions. Overall, the consistent performance of this ratio implies that Philip Morris International Inc has been effectively managing its accounts receivable and converting them into cash within a reasonable timeframe.
Peer comparison
Dec 31, 2023