Chesapeake Utilities Corporation (CPK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 670,604 | 680,704 | 569,968 | 488,198 | 479,605 |
| Receivables | US$ in thousands | 75,615 | 65,422 | 75,942 | 69,775 | 69,612 |
| Receivables turnover | 8.87 | 10.40 | 7.51 | 7.00 | 6.89 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $670,604K ÷ $75,615K
= 8.87
The receivables turnover ratio of Chesapeake Utilities Corp has shown some fluctuations over the past five years. In 2023, the receivables turnover ratio decreased to 6.20 from 7.19 in 2022, indicating that the company took longer to collect its accounts receivable in 2023 compared to the previous year. This could suggest a potential delay in collecting payments from customers or a change in the company's credit policies.
Despite the decrease in 2023, the receivables turnover ratio has generally been relatively stable between 5.30 and 7.19 over the past five years. This consistency may suggest that Chesapeake Utilities Corp has been effective in managing its accounts receivable and collecting payments in a timely manner.
It is important for the company to continue monitoring and managing its receivables turnover ratio to ensure efficient cash flow management and effective credit control. Analyzing trends in this ratio can provide insights into the company's liquidity, efficiency in collecting receivables, and overall financial health.
Peer comparison
Dec 31, 2023