Duke Energy Corporation (DUK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,046,000 | 26,329,000 | 22,817,000 | 21,706,000 | 22,144,000 |
| Receivables | US$ in thousands | 4,292,000 | 4,563,000 | 3,401,000 | 3,113,000 | 2,837,000 |
| Receivables turnover | 6.07 | 5.77 | 6.71 | 6.97 | 7.81 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $26,046,000K ÷ $4,292,000K
= 6.07
The receivables turnover ratio for Duke Energy Corp. has shown a decreasing trend over the past five years, indicating a decline in the efficiency of the company in collecting its accounts receivable.
In 2019, the receivables turnover ratio was 8.20, which means that Duke Energy Corp. collected its outstanding receivables approximately 8.20 times during the year. However, this ratio has been steadily decreasing over the years to 7.57 in 2020, 6.95 in 2021, 6.52 in 2022, and finally to 7.03 in 2023.
The lower receivables turnover ratio in recent years suggests that it is taking Duke Energy Corp. longer to collect its accounts receivable, which can potentially impact the company's cash flow and liquidity position. Further analysis would be required to understand the reasons behind this trend and to evaluate the effectiveness of the company's credit policies and collection processes.
Peer comparison
Dec 31, 2023