Philip Morris International Inc (PM)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 37,576,000 | 33,808,000 | 115,302,000 | 116,285,000 | 107,266,000 |
| Receivables | US$ in thousands | 4,675,000 | 4,391,000 | 5,444,000 | 4,458,000 | 4,126,000 |
| Receivables turnover | 8.04 | 7.70 | 21.18 | 26.08 | 26.00 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $37,576,000K ÷ $4,675,000K
= 8.04
To analyze Philip Morris International Inc's receivables turnover, we observe a consistent trend over the years starting from 2020 to 2024. The receivables turnover ratio measures how efficiently the company is collecting its accounts receivable during a specific period.
In 2020 and 2021, the receivables turnover ratio was relatively high, indicating that Philip Morris International Inc was efficient in collecting payments from its customers. This suggests good credit control and effective management of accounts receivable.
However, in 2022, there was a noticeable decrease in the receivables turnover ratio, which may indicate a slowdown in collections efficiency. This could be a concern, as it may suggest challenges in collecting payments from customers promptly.
In 2023 and 2024, the receivables turnover ratio significantly dropped, indicating a potential issue with collection efforts. A low receivables turnover ratio may signify cash flow problems, an increase in bad debts, and potential liquidity issues for the company.
Overall, Philip Morris International Inc should closely monitor its receivables turnover ratio and take necessary steps to improve collection efficiency to maintain healthy cash flow and financial stability.
Peer comparison
Dec 31, 2024