NorthWestern Corporation (NWE)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,513,898 | 1,496,441 | 1,472,370 |
| Receivables | US$ in thousands | 282,964 | 144,186 | 149,500 |
| Receivables turnover | 5.35 | 10.38 | 9.85 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,513,898K ÷ $282,964K
= 5.35
The receivables turnover ratio of NorthWestern Corporation for the periods ending June 30, 2024, September 30, 2024, and December 31, 2024, were 9.85, 10.38, and 5.35, respectively.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. In this case, we see that there was an improvement in receivables turnover from June to September, suggesting that the company was able to collect its receivables at a faster rate during the third quarter. However, the ratio decreased significantly by the end of the year, indicating that the company may have experienced challenges in collecting its receivables in the last quarter of the year.
It is important to further investigate the reasons behind the fluctuation in the receivables turnover ratio to assess the company's credit policies, collection methods, and the overall health of its accounts receivable management.
Peer comparison
Dec 31, 2024