Sempra Energy (SRE)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,720,000 | 14,439,000 | 12,857,000 | 11,370,000 | 10,829,000 |
| Receivables | US$ in thousands | 2,276,000 | 2,802,000 | 2,173,000 | 1,711,000 | 1,405,000 |
| Receivables turnover | 7.35 | 5.15 | 5.92 | 6.65 | 7.71 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $16,720,000K ÷ $2,276,000K
= 7.35
The receivables turnover ratio for Sempra has fluctuated over the past five years, ranging from a low of 4.14 in 2022 to a high of 5.89 in 2023. This ratio indicates how effectively the company is able to collect outstanding receivables from customers during a given period. A higher turnover ratio suggests that the company is collecting its accounts receivable more efficiently.
Sempra's receivables turnover ratio increased in 2023 compared to the previous year, indicating an improvement in the company's ability to collect outstanding payments from customers. This could be a positive sign of effective credit management and efficient collection practices. However, it is important to analyze the trend over multiple years and compare it with industry benchmarks for a more comprehensive assessment of Sempra's receivables management efficiency.
Peer comparison
Dec 31, 2023