PTC Inc (PTC)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,299,910	1,970,280	1,874,120	1,753,120	1,384,550
Receivables	US$ in thousands	861,953	811,398	636,556	541,072	415,221
Receivables turnover		2.67	2.43	2.94	3.24	3.33

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,299,910K ÷ $861,953K
= 2.67

The receivables turnover ratio reflects how efficiently a company collects its outstanding receivables during a specific period. In the case of PTC Inc, the trend of the receivables turnover ratio over the past five years indicates a fluctuation in the efficiency of their receivables collection process.

In 2024, the receivables turnover ratio was 2.67, which suggests that PTC Inc collected its outstanding receivables approximately 2.67 times during the year. This represents a slight improvement from the previous year's ratio of 2.43 in 2023.

However, when compared to the ratios in 2022, 2021, and 2020, which were 2.94, 3.24, and 3.33, respectively, it is evident that PTC Inc's efficiency in collecting receivables has been decreasing over the past couple of years.

A declining trend in the receivables turnover ratio can indicate potential issues with the company's credit policies, collection efforts, or the quality of its receivables. It may also signify a slowdown in sales growth or difficulties in converting credit sales into cash.

Overall, a detailed analysis of the contributing factors behind the fluctuations in PTC Inc's receivables turnover ratio over the years would provide valuable insights into its financial performance and operational efficiency in managing its accounts receivables.