Porta Communications (LSE:PTCM) Receivables Turnover: 2.25 (As of Dec. 2018)

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What is Porta Communications Receivables Turnover?

Porta Communications LSE:PTCM Receivables Turnover is 2.25 as of Dec. 2018. The stock has 4 warning signs investors should review.

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Porta Communications's Revenue for the six months ended in Dec. 2018 was £17.33 Mil. Porta Communications's average Accounts Receivable for the six months ended in Dec. 2018 was £7.70 Mil. Hence, Porta Communications's Receivables Turnover for the six months ended in Dec. 2018 was 2.25.


Porta Communications  (LSE:PTCM) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.


Porta Communications Receivables Turnover Related Terms


Porta Communications Receivables Turnover Historical Data

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The historical data trend for Porta Communications's Receivables Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Porta Communications Receivables Turnover Chart

Porta Communications Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.11 6.35 6.78 6.38 5.68

Porta Communications Semi-Annual Data
Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
Receivables Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.13 3.38 3.03 2.24 2.25

LSE:PTCM vs NWCN, ADMG: Receivables Turnover Comparison

For the Advertising Agencies subindustry, Porta Communications's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Porta Communications Receivables Turnover vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Porta Communications's Receivables Turnover distribution charts can be found below:

* The bar in red indicates where Porta Communications's Receivables Turnover falls into.



Porta Communications Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

Porta Communications's Receivables Turnover for the fiscal year that ended in Dec. 2018 is calculated as

Receivables Turnover (A: Dec. 2018 )
=Revenue / Average Accounts Receivable
=Revenue (A: Dec. 2018 ) / ((Accounts Receivable (A: Dec. 2017 ) + Accounts Receivable (A: Dec. 2018 )) / count )
=35.853 / ((6.881 + 5.74) / 2 )
=35.853 / 6.3105
=5.68

Porta Communications's Receivables Turnover for the quarter that ended in Dec. 2018 is calculated as

Receivables Turnover (Q: Dec. 2018 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Dec. 2018 ) / ((Accounts Receivable (Q: Jun. 2018 ) + Accounts Receivable (Q: Dec. 2018 )) / count )
=17.328 / ((9.653 + 5.74) / 2 )
=17.328 / 7.6965
=2.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Receivables Turnover →
What does a Receivables Turnover of 2.25 mean?
Porta Communications (LSE:PTCM) has a Receivables Turnover of 2.25 as of Dec. 2018. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Porta Communications and its competitors.
Is Porta Communications' Receivables Turnover too high?
Porta Communications' current Receivables Turnover is 2.25. The Media - Diversified industry median Receivables Turnover is 5.34. Porta Communications' value of 2.25 is 57.8% below this industry median.
How does Porta Communications' Receivables Turnover compare to NWCN and ADMG?
Porta Communications' Receivables Turnover of 2.25 can be compared against companies in the Media - Diversified industry. The industry median Receivables Turnover is 5.34. Porta Communications' value of 2.25 is 57.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Media - Diversified company?
The median Receivables Turnover among Media - Diversified companies is 5.34, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Porta Communications's current Receivables Turnover of 2.25 is 57.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Porta Communications and its competitors. For the Media - Diversified industry, the median Receivables Turnover is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Porta Communications's current Receivables Turnover is 2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Porta Communications stock overvalued right now?
Porta Communications (LSE:PTCM) has a current Receivables Turnover of 2.25. The current Receivables Turnover is 2.25 and 57.8% below the Media - Diversified industry median of 5.34. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Porta Communications (LSE:PTCM), the current Receivables Turnover is 2.25 as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Porta Communications Business Description

Address 50 Basinghall Street, Sky Light City Tower, London, GBR, EC2V 5DE
Porta Communications PLC is communications, marketing, design, advertising and analytical service provider. The company engages its business through three segments: Corporate Communications, Marketing and Advertising, and Head Office. Its operating segments include Corporate Communications and Marketing and Advertising through which it offers public relations, public affairs, media buying, advertising, marketing and corporate branding services. Its Head Office segment offers group treasury, and finance and management services. The majority of the company revenues are generated through the Corporate Communications segment mainly from the Europe and Asia-Pacific region.