TE Connectivity Ltd (TEL)
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 | 15,947,000 | 15,954,000 | 16,279,000 | 16,380,000 | 16,229,000 | 16,215,000 | 15,678,000 | 15,430,000 | 15,166,000 | 14,867,000 | 14,324,000 | 13,028,000 | 12,487,000 | 12,136,000 | 12,175,000 | 13,016,000 | 13,229,000 | 13,393,000 | 13,602,000 | 13,965,000 |
| Receivables | US$ in thousands | 2,828,000 | 2,967,000 | 2,998,000 | 3,048,000 | 2,910,000 | 2,865,000 | 3,132,000 | 3,068,000 | 2,844,000 | 2,928,000 | 2,985,000 | 2,921,000 | 2,640,000 | 2,377,000 | 2,146,000 | 2,461,000 | 2,338,000 | 2,320,000 | 2,463,000 | 2,463,000 |
| Receivables turnover | 5.64 | 5.38 | 5.43 | 5.37 | 5.58 | 5.66 | 5.01 | 5.03 | 5.33 | 5.08 | 4.80 | 4.46 | 4.73 | 5.11 | 5.67 | 5.29 | 5.66 | 5.77 | 5.52 | 5.67 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,947,000K ÷ $2,828,000K
= 5.64
TE Connectivity Ltd's receivables turnover ratio has been fluctuating over the periods analyzed. The receivables turnover ratio indicates how efficiently the company collects outstanding credit sales during a specific period. A higher ratio suggests that the company is efficient in collecting its accounts receivable.
Looking at the data, we can see that the receivables turnover ratio has ranged from a low of 4.46 in March 2021 to a high of 5.77 in March 2019. Generally, the company has maintained a relatively stable range between 4.46 and 5.77 over the past few years.
In analyzing the trend, we observe a slight increase in the receivables turnover ratio in the recent periods, with an upward trajectory from March 2021 to December 2023. This suggests an improvement in the company's ability to collect its accounts receivable more efficiently.
Overall, while there have been fluctuations in the receivables turnover ratio, the trend in recent periods indicates an improvement in TE Connectivity Ltd's efficiency in collecting its accounts receivable, which can positively impact its cash flow and overall financial performance.
Peer comparison
Dec 31, 2023