Eversource Energy (ES)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,910,700 | 12,289,300 | 9,863,080 | 8,904,430 | 8,526,500 |
| Receivables | US$ in thousands | 1,431,530 | 1,517,140 | 1,226,070 | 1,195,920 | 989,383 |
| Receivables turnover | 8.32 | 8.10 | 8.04 | 7.45 | 8.62 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,910,700K ÷ $1,431,530K
= 8.32
Eversource Energy's receivables turnover has shown a relatively stable trend over the past five years. The ratio has ranged from 6.23 to 7.29, with the latest reported figure being 7.19 as of December 31, 2023. This indicates that the company is able to collect its accounts receivable approximately 7.19 times during the year.
A higher turnover ratio typically suggests that the company is efficient in collecting outstanding receivables from its customers. Eversource Energy's consistent receivables turnover ratio above 7 over the years reflects a strong ability to efficiently manage its accounts receivable and convert them into cash. This consistent performance indicates effective credit policies and successful collection efforts, which are positive indicators of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023