PPG Industries Inc (PPG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,119,000 | 17,539,000 | 16,913,000 | 13,780,000 | 15,135,000 |
| Receivables | US$ in thousands | 3,279,000 | 3,303,000 | 3,152,000 | 2,726,000 | 2,756,000 |
| Receivables turnover | 5.53 | 5.31 | 5.37 | 5.06 | 5.49 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $18,119,000K ÷ $3,279,000K
= 5.53
The receivables turnover ratio for PPG Industries, Inc. has shown a generally stable trend over the past five years, with values ranging from 5.07 to 5.56. This indicates that on average, PPG Industries is able to collect its accounts receivable approximately 5 times a year.
The slight fluctuations in the receivables turnover ratio suggest that the company has been effectively managing its accounts receivable collection process. A higher turnover ratio generally indicates that the company is efficiently collecting payments from its customers, while a lower ratio may signify potential issues with collections.
Overall, the consistent and relatively high receivables turnover ratio for PPG Industries, Inc. reflects a healthy and effective credit and collection management strategy, which is crucial for maintaining a strong cash flow position and liquidity in the business.
Peer comparison
Dec 31, 2023