The AES Corporation (AES)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Receivables | US$ in thousands | 1,501,000 | 1,906,000 | 1,602,000 | 1,438,000 | 1,610,000 |
| Receivables turnover | 8.44 | 6.62 | 6.95 | 6.72 | 6.33 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,668,000K ÷ $1,501,000K
= 8.44
Receivables turnover measures how efficiently a company collects revenue from its credit sales. AES Corp.'s receivables turnover has been fluctuating over the past five years. The receivables turnover ratio improved from 6.89 in 2019 to 7.86 in 2021 before declining slightly in 2022 and 2023. A higher receivables turnover ratio indicates that AES Corp. is collecting its accounts receivable more quickly, which is generally a positive indicator of effective management of receivables. However, the declining trend from 2021 to 2023 could suggest a potential slowdown in collections efficiency that warrants further investigation. Overall, AES Corp.'s receivables turnover has shown variability, emphasizing the importance of monitoring this metric to ensure the company is effectively managing its receivables.