PG&E Corp (PCG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,428,000 | 21,680,000 | 20,642,000 | 18,469,000 | 17,129,000 |
| Receivables | US$ in thousands | 2,048,000 | 2,645,000 | 2,345,000 | 1,883,000 | 1,287,000 |
| Receivables turnover | 11.93 | 8.20 | 8.80 | 9.81 | 13.31 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $24,428,000K ÷ $2,048,000K
= 11.93
The receivables turnover ratio for PG&E Corp. has exhibited fluctuations over the past five years. The ratio decreased from 3.01 in 2020 to 2.24 in 2019, indicating a decline in the efficiency of collecting receivables. However, from 2019 to 2021, there was an improvement in receivables turnover, reaching a peak of 2.48 in 2021. This suggests that PG&E Corp. became more effective in collecting outstanding receivables during this period.
However, the trend reversed in 2022 and 2023, with the receivables turnover ratio declining further to 2.34 and 2.45, respectively. These lower ratios may indicate potential challenges in collecting receivables promptly, which could impact the company's cash flow and liquidity position.
Overall, PG&E Corp. should closely monitor its receivables turnover ratio to ensure efficient management of its accounts receivable and timely collection of outstanding amounts to optimize its cash flow and working capital management.
Peer comparison
Dec 31, 2023