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

Company name
Symbol
Receivables turnover
Quanta Services Inc
PWR
4.69
Comfort Systems USA Inc
FIX
33.84
EMCOR Group Inc
EME
3.93