Black Hills Corporation (BKH)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,127,700 | 2,331,300 | 2,551,800 | 1,949,100 | 1,696,940 |
| Receivables | US$ in thousands | 522,800 | 368,800 | 525,829 | 339,669 | 285,407 |
| Receivables turnover | 4.07 | 6.32 | 4.85 | 5.74 | 5.95 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,127,700K ÷ $522,800K
= 4.07
The receivables turnover ratio for Black Hills Corporation has exhibited some fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
The ratio decreased from 5.95 in 2020 to 4.07 in 2024, indicating a decline in the efficiency of the company in collecting its accounts receivable over this period.
In 2021, there was a slight decrease to 5.74, followed by a more significant drop to 4.85 in 2022. However, there was a notable improvement in 2023 when the receivables turnover increased to 6.32 before decreasing sharply in 2024.
This fluctuation in the receivables turnover ratio suggests varying levels of effectiveness in managing receivables and collecting payments from customers. It would be important for the company to closely monitor and potentially improve its credit policies, collection procedures, and customer creditworthiness assessment to enhance its receivables turnover efficiency in the future.
Peer comparison
Dec 31, 2024