MGE Energy Inc (MGEE)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 676,944 | 690,431 | 714,519 | 606,584 | 538,633 |
| Receivables | US$ in thousands | 97,177 | 95,533 | 109,911 | 97,111 | 76,195 |
| Receivables turnover | 6.97 | 7.23 | 6.50 | 6.25 | 7.07 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $676,944K ÷ $97,177K
= 6.97
The receivables turnover ratio for MGE Energy Inc has been relatively stable over the past five years, ranging from 6.25 to 7.23 times. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers during the year. A higher ratio is generally favorable as it suggests the company is collecting its receivables more quickly.
The slight fluctuations in the receivables turnover ratio for MGE Energy Inc may reflect changes in the company's credit policies, customer payment behavior, or the overall economic conditions impacting the industry. Overall, the company's ability to convert receivables into cash appears to be consistent and within a reasonable range, indicating effective management of accounts receivable. It would be essential for further analysis to assess any trends or deviations from industry norms to better understand the efficiency of MGE Energy Inc's receivables management.