Alliant Energy Corp (LNT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,027,000 | 4,205,000 | 3,669,000 | 3,416,000 | 3,648,000 |
| Receivables | US$ in thousands | 568,000 | 631,000 | 531,000 | 494,000 | 402,100 |
| Receivables turnover | 7.09 | 6.66 | 6.91 | 6.91 | 9.07 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,027,000K ÷ $568,000K
= 7.09
The receivables turnover ratio for Alliant Energy Corp. has been relatively stable over the past five years, ranging from 8.15 to 9.07. This indicates that, on average, the company collects its accounts receivable approximately 8 to 9 times during a year.
A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, which is generally positive as it indicates strong liquidity and potentially lower credit risk. However, a consistently decreasing trend in the ratio could indicate potential issues with client creditworthiness or collection procedures, while a significantly high ratio might imply stringent credit policies that could affect sales volume.
Overall, the stable range of Alliant Energy Corp.'s receivables turnover ratio indicates effective management of accounts receivable and a healthy balance between credit sales and collection practices.
Peer comparison
Dec 31, 2023