CenterPoint Energy Inc (CNP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,696,000 | 9,321,000 | 8,352,000 | 7,418,000 | 7,564,000 |
| Receivables | US$ in thousands | 1,320,000 | 1,673,000 | 1,204,000 | 1,263,000 | 1,941,000 |
| Receivables turnover | 6.59 | 5.57 | 6.94 | 5.87 | 3.90 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,696,000K ÷ $1,320,000K
= 6.59
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing the trend of Centerpoint Energy Inc.'s receivables turnover ratio over the past five years shows a fluctuating pattern. In 2023, the receivables turnover ratio increased to 6.59 from 5.57 in 2022, indicating a more efficient collection of receivables. This improvement suggests that the company was able to collect its accounts receivable at a faster rate in 2023 compared to the previous year.
Looking further back, in 2021, the ratio was at 6.94, the highest among the five years, demonstrating an efficient collection process. In 2020 and 2019, the ratios were 5.87 and 6.34, respectively, showing slightly lower levels of efficiency compared to 2021 and 2023.
Overall, Centerpoint Energy Inc. has shown variability in its receivables turnover ratio over the past five years, with an improvement in 2023 compared to the previous year. This improvement suggests that the company has been successful in managing and collecting its accounts receivable more effectively in the most recent year.
Peer comparison
Dec 31, 2023