Spire Inc (SR)

Receivables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	2,480,600	2,078,700	2,128,900	1,749,900	1,848,000
Receivables	US$ in thousands	181,900	200,200	317,300	116,900	121,100
Receivables turnover		13.64	10.38	6.71	14.97	15.26

September 30, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,480,600K ÷ $181,900K
= 13.64

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher turnover ratio indicates that the company is more effective in collecting its accounts receivable.

Looking at the trend for Spire Inc.'s receivables turnover ratio over the past five years, we can observe fluctuations. In 2023, the receivables turnover ratio increased significantly to 8.59 from 3.41 in 2022. This represents a substantial improvement in the efficiency of the company's accounts receivable management.

However, it is important to note that in 2022, the ratio had decreased from 7.05 in 2020 to 3.41, indicating a decline in the efficiency of accounts receivable collection. The ratio was relatively stable in the years prior, hovering around 6.64 and 7.05.

The significant increase in 2023 suggests that Spire Inc. was able to collect its receivables at a much faster pace compared to the previous year. This improvement may be attributed to better credit policies, more efficient collections, or a shift in customer payment patterns.

It is recommended to further investigate the underlying reasons for the fluctuation in the receivables turnover ratio to understand the company's effectiveness in managing its accounts receivable and whether the 2023 performance is sustainable.