Avista Corporation (AVA)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,751,550	1,710,210	1,438,940	1,321,890	1,345,620
Receivables	US$ in thousands	324,509	368,177	307,129	284,844	240,963
Receivables turnover		5.40	4.65	4.69	4.64	5.58

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,751,550K ÷ $324,509K
= 5.40

Avista Corp.'s receivables turnover ratio indicates how efficiently the company is collecting payments from its customers. The trend in the receivables turnover ratio over the last five years shows some fluctuations.

In 2023, the receivables turnover ratio improved to 7.12 compared to the previous year's 5.97. This signifies that Avista Corp. collected its accounts receivable more quickly in 2023, possibly due to more proactive collection efforts or improved credit policies.

Looking back at the performance in 2021 and 2020, the receivables turnover ratio remained relatively stable around 6.18 and 6.19, respectively. This suggests that Avista Corp. maintained a consistent pace in collecting receivables during those years.

However, there was a notable decrease in the receivables turnover ratio in 2019 to 7.57, indicating that Avista Corp. took longer to collect payments from its customers that year.

Overall, an increasing trend in the receivables turnover ratio is generally preferred as it reflects efficient management of accounts receivable. Avista Corp. should continue to monitor and potentially improve its receivables turnover ratio to ensure timely collection of outstanding payments.