American Electric Power Company Inc (AEP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,982,300	19,639,500	16,792,000	14,918,500	15,561,400
Receivables	US$ in thousands	2,783,100	2,957,600	2,267,500	2,276,700	1,927,500
Receivables turnover		6.82	6.64	7.41	6.55	8.07

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $18,982,300K ÷ $2,783,100K
= 6.82

The receivables turnover ratio for American Electric Power Company Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 9.13 in 2019 to 8.10 in 2020 before increasing to 8.65 in 2021. However, in the most recent years, there was a further increase to 7.64 in 2022 and 7.76 in 2023.

The decreasing trend from 2019 to 2020 may indicate that the company took longer to collect its accounts receivable in 2020 compared to the previous year. The subsequent increase in 2021 could suggest an improvement in the company's receivables management efficiency. However, this improvement seems to have been reversed in the following years as the ratio decreased in 2022 and 2023.

Overall, the company's receivables turnover ratios indicate a level of efficiency in collecting outstanding receivables, but the recent downward trend may warrant further investigation into the company's credit policies, collection processes, or customer payment behaviors.