Pentair PLC (PNR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 | 2,957,200 |
| Receivables | US$ in thousands | -11,200 | -10,800 | -9,100 | -8,400 | -10,300 |
| Receivables turnover | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,987,100K ÷ $-11,200K
= —
The receivables turnover ratio for Pentair plc has shown fluctuations over the past five years. The ratio was 6.49 in 2023, down from 7.11 in 2022 and 7.23 in 2020, but higher compared to 6.46 in 2021 and 5.44 in 2019. This indicates that Pentair is collecting its accounts receivable approximately 6.49 times in 2023, which suggests that the company is efficient in converting its credit sales into cash. The downward trend from 2022 to 2023 may indicate a slight decrease in the company's efficiency in collecting receivables during the most recent year. Further analysis of the reasons behind this trend shift would be beneficial to determine the effectiveness of the company's credit and collection policies.
Peer comparison
Dec 31, 2023