PTC Inc (PTC)

Receivables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,232,988	2,118,576	2,106,443	2,036,814	1,972,671	1,913,566	1,856,952	1,849,196	1,844,311	1,850,753	1,824,465	1,780,355	1,753,119	1,670,686	1,580,139	1,458,146	1,384,554	1,327,312	1,278,925	1,229,995
Receivables	US$ in thousands	861,953	674,959	705,493	678,000	811,398	625,471	643,017	562,036	636,556	473,298	510,196	478,673	541,072	432,980	434,533	415,835	415,221	319,244	352,673	344,412
Receivables turnover		2.59	3.14	2.99	3.00	2.43	3.06	2.89	3.29	2.90	3.91	3.58	3.72	3.24	3.86	3.64	3.51	3.33	4.16	3.63	3.57

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,232,988K ÷ $861,953K
= 2.59

PTC Inc's receivables turnover ratio has fluctuated over the past few years, showing variations in the efficiency of collecting outstanding receivables. The ratio has ranged from a low of 2.43 to a high of 4.16, with an average around 3.29. A higher ratio indicates that the company is collecting its accounts receivable more frequently during the year, which is generally desirable as it signifies strong cash flow management.

In recent periods, the receivables turnover ratio has shown a mixed trend, with some quarters performing better than others. For example, in the most recent quarter ending in September 2024, the ratio was 2.59, lower than the previous quarter's 3.14. This suggests a potential slowdown in collecting outstanding receivables during that period.

Analyzing the trend over a longer period can provide insights into the company's overall effectiveness in managing its accounts receivable. It is essential for the company to monitor and improve its receivables turnover ratio consistently to ensure efficient cash flow and working capital management.