PPL Corporation (PPL)
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 | 8,312,000 | 8,571,000 | 8,662,000 | 8,535,000 | 7,902,000 | 7,097,000 | 6,475,000 | 6,067,000 | 5,783,000 | 5,669,000 | 5,557,000 | 5,532,000 | 5,474,000 | 6,057,000 | 6,590,000 | 7,130,000 | 7,769,000 | 7,754,000 | 7,693,000 | 7,738,000 |
| Receivables | US$ in thousands | 1,221,000 | 1,068,000 | 1,049,000 | 1,154,000 | 1,046,000 | 926,000 | 867,000 | 669,000 | 641,000 | 651,000 | 658,000 | 711,000 | 881,000 | 830,000 | 771,000 | 837,000 | 792,000 | 737,000 | 772,000 | 853,000 |
| Receivables turnover | 6.81 | 8.03 | 8.26 | 7.40 | 7.55 | 7.66 | 7.47 | 9.07 | 9.02 | 8.71 | 8.45 | 7.78 | 6.21 | 7.30 | 8.55 | 8.52 | 9.81 | 10.52 | 9.97 | 9.07 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,312,000K ÷ $1,221,000K
= 6.81
The receivables turnover for PPL Corp has shown variability over the past eight quarters. It ranged from a low of 4.94 in Q4 2022 to a high of 6.40 in Q1 2022. The average receivables turnover for this period was 5.64, indicating that, on average, the company collected its accounts receivable approximately 5.64 times per year.
A higher receivables turnover ratio reflects a shorter time it takes for a company to collect its accounts receivable. In this case, PPL Corp demonstrated efficient collections in Q2 and Q3 of 2023 with turnover ratios of 6.32 and 6.14, respectively. However, there was a slight decrease in efficiency in Q4 2023 with a turnover ratio of 5.04. This fluctuation may warrant further investigation to understand the reasons behind the change.
Overall, the receivables turnover trend for PPL Corp indicates that the company is effectively managing its accounts receivable, although there are some fluctuations in efficiency from quarter to quarter. Tracking this ratio over time can help in assessing the company's ability to collect outstanding payments from its customers promptly.
Peer comparison
Dec 31, 2023