PPL Corporation (PPL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,312,000 | 7,902,000 | 5,783,000 | 5,474,000 | 5,602,000 |
| Receivables | US$ in thousands | 1,221,000 | 1,046,000 | 641,000 | 881,000 | 792,000 |
| Receivables turnover | 6.81 | 7.55 | 9.02 | 6.21 | 7.07 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,312,000K ÷ $1,221,000K
= 6.81
The receivables turnover ratio measures how effectively a company is managing its accounts receivable by indicating how many times during a period the company collects its average accounts receivable balance. For PPL Corp, the trend in the receivables turnover ratio over the past five years shows some fluctuations:
- In 2023, the receivables turnover ratio was 5.04, which indicates that the company collected its average accounts receivable balance approximately 5.04 times during the year.
- In 2022, the ratio was slightly lower at 4.94, suggesting a slight decrease in the efficiency of collecting receivables compared to the previous year.
- The ratio increased significantly in 2021 to 6.10, reflecting an improvement in the company's ability to collect receivables promptly.
- In 2020 and 2019, the ratios were 5.52 and 5.99 respectively, indicating relatively consistent performance in collecting receivables during those years.
Overall, the trend in the receivables turnover ratio for PPL Corp demonstrates some variability, with occasional improvements in efficiency in collecting accounts receivable. Further analysis of the company's collection policies and credit management practices may help in understanding the factors contributing to these fluctuations and in identifying areas for potential improvement.
Peer comparison
Dec 31, 2023