Consolidated Edison Inc (ED)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,663,000 | 15,670,000 | 13,676,000 | 12,246,000 | 12,574,000 |
| Receivables | US$ in thousands | 2,406,000 | 2,192,000 | 1,934,000 | 1,720,000 | 1,252,000 |
| Receivables turnover | 6.09 | 7.15 | 7.07 | 7.12 | 10.04 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,663,000K ÷ $2,406,000K
= 6.09
The receivables turnover of Consolidated Edison, Inc. has shown a declining trend over the past five years. In 2019, the company had a receivables turnover of 5.95, which decreased to 4.47 in 2020, and further decreased to 4.40 in 2021. However, there was a slight improvement in 2022 with a turnover of 4.85, but it decreased again to 3.87 in 2023.
A decreasing trend in receivables turnover may indicate that the company is taking longer to collect payments from its customers. This could be a potential concern as it may impact the company's cash flow and liquidity position.
It is important for Consolidated Edison, Inc. to closely monitor its accounts receivable management practices to ensure timely collection of payments and maintain a healthy cash flow position. Additionally, the company may need to assess its credit policies and customer relationships to address any underlying issues leading to a decline in the receivables turnover ratio.
Peer comparison
Dec 31, 2023