Black Hills Corporation (BKH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,331,300	2,551,800	1,949,100	1,696,940	1,734,900
Receivables	US$ in thousands	368,800	525,829	339,669	285,407	272,251
Receivables turnover		6.32	4.85	5.74	5.95	6.37

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,331,300K ÷ $368,800K
= 6.32

Black Hills Corporation's receivables turnover ratio has shown fluctuations over the past five years. The ratio was 6.32 in 2023 compared to 4.85 in 2022, 5.74 in 2021, 5.95 in 2020, and 6.37 in 2019. This indicates that the company collected its accounts receivable approximately 6.32 times in 2023, 4.85 times in 2022, 5.74 times in 2021, 5.95 times in 2020, and 6.37 times in 2019 during the respective fiscal years.

A higher receivables turnover ratio suggests that the company is efficient in collecting outstanding receivables from its customers. The increasing trend from 2020 to 2023 indicates an improvement in the company's ability to manage its accounts receivable efficiently, with a notable peak in 2023.

However, it is essential to further analyze the reasons behind these fluctuations in the ratio. A high receivables turnover ratio can also indicate a very tight credit policy, potentially leading to lost sales if customers are unable to meet stringent payment terms. Conversely, a low turnover ratio could signal potential issues such as credit risk with customers or ineffective collection practices. Further investigation into the company's credit policies and collection procedures would provide a more holistic understanding of its receivables management.