PNM Resources Inc (PNM)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,939,198	2,102,903	2,326,940	2,349,514	2,249,555	2,107,811	1,932,474	1,859,284	1,779,873	1,705,074	1,622,988	1,554,097	1,523,012	1,507,880	1,469,001	1,441,580	1,457,603	1,457,215	1,446,295	1,468,380
Receivables	US$ in thousands	197,060	245,347	191,492	183,504	249,493	247,328	220,135	162,270	185,906	211,023	198,830	150,968	174,586	204,702	171,183	133,324	148,238	176,831	149,281	141,265
Receivables turnover		9.84	8.57	12.15	12.80	9.02	8.52	8.78	11.46	9.57	8.08	8.16	10.29	8.72	7.37	8.58	10.81	9.83	8.24	9.69	10.39

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,939,198K ÷ $197,060K
= 9.84

The receivables turnover for PNM Resources Inc has shown fluctuating trends over the past eight quarters. In Q1 2022, the company had a relatively high receivables turnover of 10.23, which then increased further to 11.43 in Q1 2023, indicating that the company was able to collect its accounts receivable quickly during those periods.

However, in the subsequent quarters, the receivables turnover ratio decreased, reaching its lowest point of 7.09 in Q4 2023. This suggests that PNM Resources Inc took longer to collect its receivables during that quarter compared to previous quarters.

On average, the company's receivables turnover ratio over the eight quarters was approximately 8.58, indicating that on average, PNM Resources Inc collected its accounts receivable around 8.58 times per year.

It's essential for PNM Resources Inc to closely monitor and manage its accounts receivable turnover to ensure efficient collections and maintain healthy cash flows. The downward trend in the receivables turnover ratio in recent quarters should be thoroughly analyzed to understand the underlying reasons and take necessary steps to improve efficiency in collecting receivables.