DTE Energy Company (DTE)
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 | 407,000 | 430,000 | 392,000 | 319,000 | 442,000 | 4,774,000 | 9,922,000 | 14,776,000 | 19,228,000 | 19,399,000 | 17,863,000 | 16,168,000 | 15,369,000 | 14,010,000 | 13,579,000 | 12,933,000 | 12,177,000 | 12,037,000 | 11,872,000 | 12,177,000 |
| Receivables | US$ in thousands | 1,827,000 | 1,613,000 | 1,750,000 | 1,615,000 | 1,787,000 | 1,566,000 | 1,495,000 | 1,693,000 | 2,182,000 | 1,980,000 | 2,158,000 | 1,812,000 | 1,830,000 | 1,692,000 | 1,707,000 | 1,685,000 | 1,792,000 | 1,559,000 | 1,746,000 | 1,742,000 |
| Receivables turnover | 0.22 | 0.27 | 0.22 | 0.20 | 0.25 | 3.05 | 6.64 | 8.73 | 8.81 | 9.80 | 8.28 | 8.92 | 8.40 | 8.28 | 7.95 | 7.68 | 6.80 | 7.72 | 6.80 | 6.99 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $407,000K ÷ $1,827,000K
= 0.22
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables during a specific period. A higher ratio indicates that the company is collecting its accounts receivable more quickly.
Based on the provided data for DTE Energy Company, the receivables turnover ratio has shown fluctuations over time. The ratio was relatively stable and ranged between 6.80 and 8.40 from March 2020 to December 2021. There was a notable increase in the receivables turnover ratio from March 2022 to September 2022, reaching a peak of 9.80, indicating an improvement in the company's ability to collect receivables efficiently.
However, from December 2022 onwards, the receivables turnover ratio experienced a significant decline, dropping to 0.22 by December 2024. This sharp decrease suggests potential issues with collecting accounts receivable promptly, which could impact the company's cash flow and liquidity.
It is crucial for DTE Energy Company to assess the reasons behind the declining receivables turnover ratio and take appropriate actions to improve their collections process moving forward. Analyzing the underlying factors contributing to this trend will be essential in maintaining a healthy financial position and operational efficiency.
Peer comparison
Dec 31, 2024