Portland General Electric Co (POR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,923,000 | 2,647,000 | 2,396,000 | 2,145,000 | 2,123,000 |
| Receivables | US$ in thousands | 552,000 | 529,000 | 446,000 | 368,000 | 167,000 |
| Receivables turnover | 5.30 | 5.00 | 5.37 | 5.83 | 12.71 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,923,000K ÷ $552,000K
= 5.30
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is generally seen as a positive sign.
In the case of Portland General Electric Co, we can see that the receivables turnover ratio has been decreasing over the past five years, from 8.39 in 2019 to 7.06 in 2023. This implies that the company is taking longer to collect payments from its customers.
While a decreasing receivables turnover ratio may raise concerns about the company's ability to effectively manage its accounts receivable, it is important to consider other factors that may be influencing this trend. For example, changes in the company's customer base, payment terms, or industry dynamics could all impact the receivables turnover ratio.
Overall, further analysis and comparison with industry benchmarks would be needed to fully assess the implications of the decreasing receivables turnover ratio for Portland General Electric Co.
Peer comparison
Dec 31, 2023