MGE Energy Inc (MGEE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 95,533 | 109,911 | 97,111 | 76,195 | 74,321 |
| Receivables turnover | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $—K ÷ $95,533K
= 0.00
The receivables turnover ratio for MGE Energy Inc has been consistently reported as 0.00 for the past five years (Dec 31, 2019 to Dec 31, 2023). This indicates that the company has not been effectively managing its accounts receivables during this period. A receivables turnover ratio of 0.00 reflects either an extremely low level of sales relative to accounts receivable or significant issues with collecting payments from customers.
An unchanging and low receivables turnover ratio could suggest that MGE Energy Inc may be offering lenient credit terms to customers, leading to delayed or non-payment of receivables. This could potentially impact the company's cash flow and liquidity position.
Further investigation into the reasons behind the consistently low receivables turnover ratio is necessary to assess the effectiveness of MGE Energy Inc's credit and collection policies and to implement appropriate measures to improve its accounts receivable management in the future.