MGE Energy Inc (MGEE)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 676,944 | 670,181 | 662,229 | 664,514 | 690,431 | 715,612 | 718,484 | 722,834 | 714,519 | 686,752 | 669,225 | 647,607 | 606,584 | 581,027 | 570,365 | 556,675 | 538,633 | 543,065 | 546,052 | 551,159 |
| Receivables | US$ in thousands | 97,177 | 85,295 | 87,115 | 87,804 | 95,533 | 85,776 | 82,873 | 95,933 | 109,911 | 81,298 | 78,612 | 96,250 | 97,111 | 79,085 | 71,951 | 78,022 | 76,195 | 69,034 | 64,655 | 70,707 |
| Receivables turnover | 6.97 | 7.86 | 7.60 | 7.57 | 7.23 | 8.34 | 8.67 | 7.53 | 6.50 | 8.45 | 8.51 | 6.73 | 6.25 | 7.35 | 7.93 | 7.13 | 7.07 | 7.87 | 8.45 | 7.79 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $676,944K ÷ $97,177K
= 6.97
The receivables turnover for MGE Energy Inc has fluctuated over the past few years, indicating the company's ability to efficiently collect its accounts receivable.
From March 31, 2020, to December 31, 2020, the receivables turnover decreased from 7.79 to 7.07, suggesting a potential slowdown in collection efficiency. However, the turnover ratio picked up in the following quarters, reaching a high of 8.67 on June 30, 2023, before stabilizing around 7.5 to 8.0 in subsequent periods.
Overall, the company's average receivables turnover ratio has been relatively healthy, with values consistently above 6.0. This signifies that MGE Energy Inc typically collects its outstanding receivables multiple times throughout the year, reflecting a strong and efficient accounts receivable management process.
However, the fluctuations in the receivables turnover ratio over the years could indicate shifts in the company's credit policies, customer payment behaviors, or industry-specific factors that may warrant further investigation to ensure sustainable and optimized cash flow management.