OGE Energy Corporation (OGE)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,674,300	3,375,700	3,653,700	2,122,300	2,231,600
Receivables	US$ in thousands	299,700	345,000	229,900	233,500	229,400
Receivables turnover		8.92	9.78	15.89	9.09	9.73

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,674,300K ÷ $299,700K
= 8.92

The receivables turnover ratio measures how efficiently Oge Energy Corp. is able to collect outstanding receivables from its customers. A higher receivables turnover indicates that the company is collecting its accounts receivable more frequently or quickly.

Looking at the trend over the past five years, we can observe fluctuations in the receivables turnover ratio. In 2021, the ratio was notably high at 15.89, suggesting that Oge Energy Corp. was able to collect its outstanding receivables almost 16 times during that year. This may indicate strong credit collection policies and effective management of accounts receivable.

In the following years, the receivables turnover ratio decreased, falling to 8.92 in 2023. This decline could imply a lengthening of the collection period for accounts receivable, which may be a cause for concern as it could potentially impact the company's cash flow and liquidity.

However, it's important to note that a lower receivables turnover ratio does not necessarily indicate poor performance, as it could also be reflective of changes in the company's sales patterns or credit terms. Further analysis of the company's accounts receivable aging and collection processes would provide a more comprehensive understanding of the efficiency of Oge Energy Corp.'s receivables management.