The AES Corporation (AES)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Receivables | US$ in thousands | 1,731,000 | 1,501,000 | 1,906,000 | 1,602,000 | 1,438,000 |
| Receivables turnover | 7.09 | 8.44 | 6.62 | 6.95 | 6.72 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,278,000K ÷ $1,731,000K
= 7.09
The receivables turnover for The AES Corporation has shown some fluctuations over the past five years. In 2020, the receivables turnover was 6.72, indicating that the company collected its accounts receivable approximately 6.72 times during the year.
By the end of 2021, the receivables turnover improved to 6.95, suggesting that the company became more efficient in collecting its receivables. However, in 2022, the turnover ratio decreased to 6.62, signaling a potential delay in collecting accounts receivable compared to the previous year.
The receivables turnover saw a significant increase in 2023 to 8.44, which could indicate that the company improved its credit policies or collection processes, leading to a quicker turnover of receivables. In 2024, the turnover ratio decreased slightly to 7.09, but it still remained relatively high compared to the earlier years.
Overall, the trend in receivables turnover for The AES Corporation suggests that the company has been fairly effective in managing its accounts receivable and collecting payments from customers in a timely manner. However, it would be beneficial for the company to analyze the reasons behind the fluctuations in the turnover ratio to maintain or improve its efficiency in managing receivables.