TE Connectivity Ltd (TEL)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 | 13,380,000 |
| Receivables | US$ in thousands | 2,967,000 | 2,865,000 | 2,928,000 | 2,377,000 | 2,320,000 |
| Receivables turnover | 5.38 | 5.66 | 5.08 | 5.10 | 5.77 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,954,000K ÷ $2,967,000K
= 5.38
TE Connectivity Ltd's receivables turnover ratio has shown a fluctuating trend over the past five years. The receivables turnover ratio measures how efficiently the company is collecting payments from its customers. In this case, the decreasing trend from 2019 to 2021 indicates a potential slowdown in the collection of receivables. However, the ratio increased slightly in 2022 but decreased again in 2023.
The 2023 receivables turnover ratio of 5.38 suggests that the company collects receivables approximately 5.38 times during the year, indicating a moderate improvement in efficiency compared to the previous year. While this ratio alone may not provide a full picture of the company's overall financial health, it is essential to monitor changes in receivables turnover over time to assess the effectiveness of the company's credit and collection policies. Further analysis of the company's operations and industry benchmarks may provide more insights into its receivables management.
Peer comparison
Sep 30, 2023