American Electric Power Co Inc (AEP)

Receivables turnover

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 19,719,300 20,364,700 19,317,100 18,982,300 19,286,200 19,470,600 19,737,800 19,639,500 18,819,800 17,916,700 17,103,500 16,792,000 16,341,200 15,784,600 15,452,100 14,918,500 14,923,900 15,172,500 15,252,100 15,561,400
Receivables US$ in thousands 3,037,100 3,025,700 2,725,600 2,783,100 2,995,500 2,756,900 2,684,700 2,957,600 2,824,300 2,706,200 2,209,900 2,267,500 2,556,300 2,523,200 2,245,900 2,276,700 2,063,100 1,992,600 1,983,700 1,927,500
Receivables turnover 6.49 6.73 7.09 6.82 6.44 7.06 7.35 6.64 6.66 6.62 7.74 7.41 6.39 6.26 6.88 6.55 7.23 7.61 7.69 8.07

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,719,300K ÷ $3,037,100K
= 6.49

American Electric Power Co Inc's receivables turnover has shown some fluctuations over the past few years. The ratio has ranged from a high of 8.07 on December 31, 2019, to a low of 6.26 on June 30, 2021. This metric indicates how efficiently the company is able to collect cash from its credit sales within a specific period.

A decreasing trend in receivables turnover may suggest that the company is taking longer to collect payments from its customers. This could be due to changes in customer payment behaviors, credit policies, or potential issues with accounts receivable management.

Conversely, an increasing trend in receivables turnover could indicate improved collections processes or more stringent credit policies, leading to quicker conversion of receivables into cash.

It is important for American Electric Power Co Inc to closely monitor its receivables turnover ratio and investigate the factors influencing any significant changes to maintain a healthy cash flow and efficient working capital management.