PPG Industries Inc (PPG)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,119,000 | 17,888,000 | 17,733,000 | 17,607,000 | 17,552,000 | 17,655,000 | 17,643,000 | 17,356,000 | 16,913,000 | 16,477,000 | 15,717,000 | 14,289,000 | 13,791,000 | 13,706,000 | 13,844,000 | 14,888,000 | 15,131,000 | 15,104,000 | 15,103,000 | 15,207,000 |
| Receivables | US$ in thousands | 3,279,000 | 3,612,000 | 3,821,000 | 3,595,000 | 3,303,000 | 3,541,000 | 3,818,000 | 3,659,000 | 3,152,000 | 3,382,000 | 3,498,000 | 3,034,000 | 2,726,000 | 2,843,000 | 2,673,000 | 2,804,000 | 2,756,000 | 3,028,000 | 3,332,000 | 3,197,000 |
| Receivables turnover | 5.53 | 4.95 | 4.64 | 4.90 | 5.31 | 4.99 | 4.62 | 4.74 | 5.37 | 4.87 | 4.49 | 4.71 | 5.06 | 4.82 | 5.18 | 5.31 | 5.49 | 4.99 | 4.53 | 4.76 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $18,119,000K ÷ $3,279,000K
= 5.53
PPG Industries, Inc.'s receivables turnover has shown fluctuations over the past eight quarters, ranging from a low of 4.60 in Q2 2022 to a high of 5.56 in Q4 2023. The overall trend indicates that the company has been efficient in collecting its receivables during this period. A higher turnover ratio is generally preferred, as it suggests that the company is collecting its outstanding receivables more quickly.
The average receivables turnover over these eight quarters is approximately 4.97, indicating that, on average, PPG Industries, Inc. collects its outstanding receivables nearly five times a year. This implies that the company has a solid accounts receivable management strategy in place.
It is also worth noting that the receivables turnover has shown some volatility, which could be influenced by factors such as changes in credit policies, customer payment patterns, or economic conditions. Management should continue to monitor and analyze these trends to ensure efficient management of receivables in the future.
Peer comparison
Dec 31, 2023