Middlesex Water Company (MSEX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 153,788 | 161,157 | 135,679 | 133,956 | 127,194 |
| Receivables | US$ in thousands | 27,469 | 24,677 | 22,584 | 21,634 | 19,091 |
| Receivables turnover | 5.60 | 6.53 | 6.01 | 6.19 | 6.66 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $153,788K ÷ $27,469K
= 5.60
The receivables turnover ratio measures how efficiently a company is collecting outstanding receivables during a specific period. A higher turnover ratio indicates a more effective collection process.
Middlesex Water Co.'s receivables turnover has fluctuated over the past five years, ranging from 6.05 in 2023 to 7.05 in 2019. The trend shows a slight decline in the turnover ratio since 2019, indicating a potential slowdown in the collection of accounts receivable.
Although the turnover ratio remains above 6 in the recent years, suggesting that Middlesex Water Co. is still efficiently collecting its outstanding receivables, management may want to closely monitor this metric to ensure timely collection and maintain a healthy cash flow. Further analysis of the company's credit policies, customer payment behavior, and industry comparisons may provide additional insights into the performance of Middlesex Water Co. in managing its accounts receivable.
Peer comparison
Dec 31, 2023