American Water Works (AWK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 | 3,606,000 |
| Receivables | US$ in thousands | 727,000 | 723,000 | 519,000 | 527,000 | 466,000 |
| Receivables turnover | 5.80 | 5.23 | 9.01 | 7.17 | 7.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,217,000K ÷ $727,000K
= 5.80
The receivables turnover ratio for American Water Works Co. Inc. has displayed some fluctuations over the past five years. The ratio indicates how efficiently the company is able to collect cash from its customers.
In 2023, the receivables turnover ratio was 6.61, showing a slight improvement from the previous year. This means that for 2023, the company collected its accounts receivable approximately 6.61 times throughout the year.
Comparing this to the ratios of the previous years, we can see that the highest receivables turnover was in 2019 at 7.75, indicating that the company was more efficient in collecting cash from customers that year. Subsequently, the ratio declined in the following years but showed some recovery in 2023.
Overall, the receivables turnover ratio for American Water Works Co. Inc. has shown variability over the past five years, with some years exhibiting more efficient collection of receivables than others. Further analysis of the company's accounts receivable management practices and industry benchmarks may provide additional insights into its performance in this aspect.
Peer comparison
Dec 31, 2023