Black Hills Corporation (BKH)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,127,700	2,122,332	2,127,832	2,136,532	2,331,332	2,531,039	2,586,551	2,649,446	2,551,816	2,322,885	2,240,863	2,139,240	1,949,102	1,872,981	1,838,981	1,793,323	1,696,941	1,688,208	1,667,166	1,674,140
Receivables	US$ in thousands	522,800	295,200	316,800	474,800	368,800	313,057	349,669	649,432	525,829	349,784	366,049	532,075	339,669	262,766	270,076	391,582	285,407	242,042	247,013	343,149
Receivables turnover		4.07	7.19	6.72	4.50	6.32	8.08	7.40	4.08	4.85	6.64	6.12	4.02	5.74	7.13	6.81	4.58	5.95	6.97	6.75	4.88

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,127,700K ÷ $522,800K
= 4.07

The receivables turnover ratio for Black Hills Corporation fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio measures the efficiency with which the company collects outstanding receivables from its customers during a specific period.

The trend in the receivables turnover ratio indicates that the company's ability to collect receivables improved in the short term from March 31, 2020, to September 30, 2021. However, there was a slight decline in the efficiency as the ratio decreased from September 30, 2021 to March 31, 2022. This decrease continued until June 30, 2023, followed by significant improvement in the ratio by September 30, 2023.

The highest receivables turnover ratio was observed on September 30, 2023, at 8.08, indicating that the company collected its outstanding receivables more than eight times during that period. This suggests efficient management of accounts receivable. Conversely, the lowest ratio was reported on March 31, 2024, at 4.07, reflecting a decrease in the collection efficiency.

Overall, while the company experienced fluctuations in its receivables turnover ratio, it is essential to examine the reasons behind these changes to assess the effectiveness of the company's credit and collection policies, customer payment behavior, and potential economic impacts on the business.