Kinder Morgan Inc (KMI)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	15,334,000	15,875,000	17,145,000	18,795,000	19,200,000	19,046,000	17,693,000	15,692,000	16,610,000	15,300,000	14,395,000	13,805,000	11,700,000	11,937,000	12,232,000	12,886,000	13,209,000	13,638,000	13,941,000	14,155,000
Receivables	US$ in thousands	1,588,000	1,502,000	1,284,000	1,321,000	1,882,000	1,873,000	2,063,000	1,661,000	1,653,000	1,433,000	1,416,000	1,425,000	1,340,000	1,142,000	1,073,000	1,186,000	1,408,000	1,273,000	1,227,000	1,310,000
Receivables turnover		9.66	10.57	13.35	14.23	10.20	10.17	8.58	9.45	10.05	10.68	10.17	9.69	8.73	10.45	11.40	10.87	9.38	10.71	11.36	10.81

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,334,000K ÷ $1,588,000K
= 9.66

The receivables turnover ratio for Kinder Morgan Inc has shown some variation throughout the past eight quarters. In Q1 2022, the ratio was relatively low at 9.45, indicating that the company collected its accounts receivable about 9.45 times during that quarter. This figure improved in subsequent quarters, reaching a peak in Q3 2023 at 13.35.

Overall, the trend shows a generally increasing pattern in the efficiency of collecting accounts receivable over the specified period. A higher receivables turnover ratio suggests that the company is collecting its accounts receivable more frequently, which can be seen as a positive sign of effective credit and collection policies.

However, it is important to note that a very high receivables turnover ratio could also indicate a very conservative credit policy that may be limiting potential sales. Therefore, a balance must be struck to ensure efficient collections without hindering revenue generation.