DTE Energy Company (DTE)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 407,000 | 442,000 | 19,228,000 | 14,964,000 | 12,177,000 |
| Receivables | US$ in thousands | 1,827,000 | 1,787,000 | 2,182,000 | 1,830,000 | 1,792,000 |
| Receivables turnover | 0.22 | 0.25 | 8.81 | 8.18 | 6.80 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $407,000K ÷ $1,827,000K
= 0.22
The receivables turnover ratio for DTE Energy Company has shown a generally positive trend from 2020 to 2023, indicating an improvement in the company's ability to collect payments from customers. In 2020, the ratio stood at 6.80, increasing to 8.18 in 2021 and further to 8.81 in 2022. These increases suggest that the company has become more efficient in converting its accounts receivable into cash during these years.
However, there was a significant decline in the receivables turnover ratio in 2023, dropping sharply to 0.25, and further falling to 0.22 in 2024. This sharp decrease indicates potential issues with the company's accounts receivable management, as a lower ratio suggests that DTE Energy may be taking longer to collect payments from its customers, which could impact its liquidity and cash flow.
Overall, while the company showed improvement in receivables turnover efficiency from 2020 to 2022, the drastic decline in 2023 and 2024 raises concerns about the effectiveness of DTE Energy's credit and collection policies, and warrants further investigation into the underlying reasons for this significant drop in receivables turnover.
Peer comparison
Dec 31, 2024