MDU Resources Group Inc (MDU)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,657,340 | 4,441,780 | 5,680,730 | 5,532,750 | 5,336,780 |
| Receivables | US$ in thousands | 942,782 | 1,064,340 | 946,741 | 873,986 | 836,605 |
| Receivables turnover | 4.94 | 4.17 | 6.00 | 6.33 | 6.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,657,340K ÷ $942,782K
= 4.94
The receivables turnover ratio for MDU Resources Group Inc has shown a declining trend over the past five years. This indicates that the company is taking longer to collect payments from its customers. In 2019, the receivables turnover ratio was at its highest at 6.38, gradually decreasing to 4.94 in 2023.
A decreasing receivables turnover ratio could suggest potential issues with the company's credit policies, increasing credit sales to customers with poor creditworthiness, or challenges in collecting payments in a timely manner. It is important for the company to closely monitor and manage its accounts receivable to ensure efficient cash flow and minimize the risk of bad debt.
Overall, the declining trend in MDU Resources Group Inc's receivables turnover ratio warrants further investigation into its credit management practices and collection processes to optimize its working capital efficiency.
Peer comparison
Dec 31, 2023