Chesapeake Utilities Corporation (CPK)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 670,604 | 672,570 | 672,076 | 675,953 | 680,704 | 653,767 | 630,049 | 601,661 | 569,968 | 546,642 | 540,726 | 526,695 | 488,198 | 483,134 | 474,341 | 471,832 | 479,606 | 481,846 | 482,620 | 481,950 |
| Receivables | US$ in thousands | 75,615 | 50,332 | 46,675 | 62,310 | 65,422 | 53,184 | 52,487 | 63,167 | 75,942 | 57,292 | 49,682 | 64,858 | 69,775 | 64,158 | 56,522 | 60,539 | 69,612 | 45,604 | 59,892 | 83,157 |
| Receivables turnover | 8.87 | 13.36 | 14.40 | 10.85 | 10.40 | 12.29 | 12.00 | 9.52 | 7.51 | 9.54 | 10.88 | 8.12 | 7.00 | 7.53 | 8.39 | 7.79 | 6.89 | 10.57 | 8.06 | 5.80 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $670,604K ÷ $75,615K
= 8.87
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by showing how many times a company collects its average accounts receivable balance during a specific period. A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing Chesapeake Utilities Corp's receivables turnover over the past 8 quarters, we observe fluctuations in the ratio. In Q4 2023, the receivables turnover ratio was 6.20, indicating that the company collected its receivables approximately 6.20 times during that quarter. This represents a slight decrease from the previous quarter's ratio of 10.26 in Q3 2023.
The company's receivables turnover for Q3 and Q2 2023 was relatively high at 10.26 and 10.74 respectively, suggesting efficient management of accounts receivable during those periods. However, there was a noticeable decline in Q1 2023 to 7.82, showing a slower collection of receivables compared to the preceding quarters.
Comparing the latest Q4 2023 ratio to the same quarter in the previous year, there has been an improvement from 7.19 to 6.20, indicating a more efficient collection of receivables.
Overall, it is essential for Chesapeake Utilities Corp to monitor its receivables turnover consistently to ensure effective management of its accounts receivable and maintain healthy cash flow. The fluctuations in the receivables turnover ratio might require further investigation into customer payment trends, credit policies, and collection processes to optimize the company's working capital management.
Peer comparison
Dec 31, 2023