American Electric Power Co Inc (AEP)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	19,721,300	18,982,300	19,639,500	16,792,000	14,918,500
Receivables	US$ in thousands	3,037,100	2,783,100	2,957,600	2,267,500	2,276,700
Receivables turnover		6.49	6.82	6.64	7.41	6.55

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $19,721,300K ÷ $3,037,100K
= 6.49

American Electric Power Co Inc's receivables turnover has shown some fluctuation over the past five years. The ratio increased from 6.55 in December 31, 2020, to 7.41 in December 31, 2021, indicating that the company collected its accounts receivable more efficiently in 2021.

However, in subsequent years, there was some variability in the receivables turnover ratio, with values of 6.64 in 2022, 6.82 in 2023, and 6.49 in 2024. This suggests that the company's ability to convert its accounts receivable into cash has been somewhat mixed in these years.

Overall, the average receivables turnover ratio for the period indicates that American Electric Power Co Inc generally collects its accounts receivable approximately 6 to 7 times a year. This measure highlights the efficiency of the company in managing its credit sales and collection processes, which is crucial for maintaining a healthy cash flow and financial stability.