The AES Corporation (AES)
Receivables turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,668,000 | 12,760,000 | 12,953,000 | 13,004,000 | 12,617,000 | 12,327,000 | 11,736,000 | 11,358,000 | 11,141,000 | 10,931,000 | 10,440,000 | 9,957,000 | 9,660,000 | 9,531,000 | 9,611,000 | 9,877,000 | 10,189,000 | 10,380,000 | 10,592,000 | 10,646,000 |
| Receivables | US$ in thousands | 1,501,000 | 1,725,000 | 1,710,000 | 1,859,000 | 1,906,000 | 1,787,000 | 1,675,000 | 1,523,000 | 1,602,000 | 1,400,000 | 1,374,000 | 1,342,000 | 1,438,000 | 1,404,000 | 1,414,000 | 1,446,000 | 1,610,000 | 1,503,000 | 1,538,000 | 1,564,000 |
| Receivables turnover | 8.44 | 7.40 | 7.57 | 7.00 | 6.62 | 6.90 | 7.01 | 7.46 | 6.95 | 7.81 | 7.60 | 7.42 | 6.72 | 6.79 | 6.80 | 6.83 | 6.33 | 6.91 | 6.89 | 6.81 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $12,668,000K ÷ $1,501,000K
= 8.44
The receivables turnover ratio for AES Corp. has been relatively stable over the past eight quarters, ranging from 6.90 to 8.92. This ratio indicates how efficiently the company is collecting payments from its customers during a given period. A higher turnover ratio suggests that AES Corp. is collecting receivables more quickly, which is generally positive as it means less capital tied up in outstanding payments.
The average receivables turnover ratio for AES Corp. over the period is approximately 7.62, suggesting that the company, on average, collects payments from customers roughly 7.62 times a year. This indicates a consistent performance in managing its receivables.
It is also worth noting that the ratio has spiked to 8.92 in Q4 2023, representing a potential improvement in the company's collection efficiency during that quarter. However, further analysis is needed to understand the underlying reasons for this increase.
Overall, based on the stable and relatively high receivables turnover ratios, AES Corp. appears to be effectively managing its accounts receivables, which is a positive indicator of its financial health.