Pinnacle West Capital Corp (PNW)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,124,920 | 4,695,990 | 4,324,380 | 3,803,840 | 3,586,980 |
| Receivables | US$ in thousands | 500,759 | 491,791 | 443,517 | 374,083 | 300,586 |
| Receivables turnover | 10.23 | 9.55 | 9.75 | 10.17 | 11.93 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,124,920K ÷ $500,759K
= 10.23
The receivables turnover for Pinnacle West Capital Corp has been fairly consistent over the years, starting at 11.93 in December 31, 2020, and gradually decreasing to 10.17 by December 31, 2021. However, there was a further decline to 9.75 by December 31, 2022, and a slight decrease to 9.55 by December 31, 2023. Interestingly, there was a slight improvement to 10.23 by December 31, 2024.
A decreasing trend in receivables turnover may indicate that the company is taking longer to collect payments from its customers, which could potentially lead to cash flow issues. It is important for the company to monitor this ratio closely and take steps to improve its collections process if needed.
On the other hand, the slight improvement in the ratio in the last year could be a positive sign, suggesting that the company may have implemented measures to speed up its receivables collection process.
Overall, while the trend in receivables turnover has been somewhat fluctuating, it is essential for Pinnacle West Capital Corp to continue evaluating and optimizing its receivables management to ensure efficient cash flow operations.
Peer comparison
Dec 31, 2024