Quanta Services Inc (PWR)
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 | 20,699,050 | 19,351,160 | 18,210,790 | 17,413,820 | 16,964,340 | 16,466,920 | 15,376,000 | 14,164,130 | 12,918,810 | 11,929,390 | 11,598,750 | 11,105,910 | 11,160,720 | 11,373,800 | 11,696,580 | 12,023,630 | 12,064,950 | 12,064,370 | 11,706,800 | 14,182,960 |
| Receivables | US$ in thousands | 4,410,830 | 4,332,500 | 4,075,210 | 3,644,620 | 3,674,520 | 3,638,360 | 3,518,580 | 3,356,570 | 3,400,320 | 3,002,170 | 2,570,460 | 2,666,980 | 2,716,080 | 2,750,270 | 2,370,290 | 2,593,280 | 2,747,910 | 3,188,330 | 2,632,000 | 2,580,660 |
| Receivables turnover | 4.69 | 4.47 | 4.47 | 4.78 | 4.62 | 4.53 | 4.37 | 4.22 | 3.80 | 3.97 | 4.51 | 4.16 | 4.11 | 4.14 | 4.93 | 4.64 | 4.39 | 3.78 | 4.45 | 5.50 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $20,699,050K ÷ $4,410,830K
= 4.69
The receivables turnover ratio for Quanta Services, Inc. has been relatively stable over the past eight quarters, ranging from 4.24 to 4.81. This ratio measures how efficiently the company is able to collect on its accounts receivable during a specific period. A higher turnover ratio indicates that the company is more effective in converting its credit sales into cash, which is generally seen as a positive sign.
In Quanta Services, Inc.'s case, the average receivables turnover ratio over these eight quarters is approximately 4.56. This suggests that, on average, the company was able to collect on its accounts receivable about 4.56 times per year during this period.
A consistent and healthy receivables turnover ratio may indicate effective credit management policies and practices, ensuring that the company is not overly extending credit or dealing with significant collection issues. It also reflects the company's ability to maintain good relationships with its customers.
However, further analysis of the trend in receivables turnover ratio and comparison with industry benchmarks would provide a more comprehensive assessment of Quanta Services, Inc.'s efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023