American Water Works (AWK)
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 | 4,215,000 | 4,124,000 | 4,030,000 | 3,872,000 | 3,785,000 | 4,558,000 | 4,576,000 | 4,636,000 | 4,676,000 | 3,922,000 | 3,902,000 | 3,820,000 | 3,786,000 | 3,724,000 | 3,663,000 | 3,637,000 | 3,606,000 | 3,556,000 | 3,517,000 | 3,488,000 |
| Receivables | US$ in thousands | 727,000 | 754,000 | 757,000 | 703,000 | 723,000 | 631,000 | 667,000 | 520,000 | 519,000 | 597,000 | 565,000 | 493,000 | 527,000 | 559,000 | 505,000 | 464,000 | 466,000 | 522,000 | 516,000 | 477,000 |
| Receivables turnover | 5.80 | 5.47 | 5.32 | 5.51 | 5.24 | 7.22 | 6.86 | 8.92 | 9.01 | 6.57 | 6.91 | 7.75 | 7.18 | 6.66 | 7.25 | 7.84 | 7.74 | 6.81 | 6.82 | 7.31 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,215,000K ÷ $727,000K
= 5.80
The receivables turnover of American Water Works Co. Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the receivables turnover ratio was 6.61, indicating that the company collected its accounts receivable approximately 6.61 times during the quarter. This was higher than the previous quarter's ratio of 5.90.
Despite the increase in Q4 2023, the company's receivables turnover ratio has been relatively stable over the past two years, fluctuating between 5.73 and 7.47. This suggests that American Water Works Co. Inc. has been effective in managing its accounts receivable and converting them into cash in a timely manner.
A high receivables turnover ratio typically indicates that the company collects payments from its customers quickly, which is a positive sign of efficient credit management. However, it's important to consider industry benchmarks and trends over time to fully evaluate the company's performance in managing its accounts receivable.
Peer comparison
Dec 31, 2023