Southwest Gas Holdings Inc (SWX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,433,970 | 4,960,010 | 3,680,450 | 3,298,870 | 3,119,920 |
| Receivables | US$ in thousands | 888,484 | 874,984 | 723,943 | 533,056 | 505,848 |
| Receivables turnover | 6.12 | 5.67 | 5.08 | 6.19 | 6.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,433,970K ÷ $888,484K
= 6.12
Southwest Gas Holdings Inc's receivables turnover ratio has exhibited a fluctuating trend over the past five years. The ratio stood at 5.54 in 2023, signaling that the company collected its accounts receivable approximately 5.54 times during the year. This indicates an improvement compared to the previous year when the turnover was 5.15.
In 2021, the ratio decreased to 4.55, implying a slight inefficiency in collecting receivables compared to the previous two years. However, there was a notable recovery in 2020 with a turnover of 5.36, indicating an improvement in collecting receivables efficiently. The ratio was also relatively stable in 2019 at 5.33.
Overall, a higher receivables turnover ratio suggests that Southwest Gas Holdings Inc is efficient in collecting payments from its customers, which is a positive sign of effective accounts receivable management. However, the fluctuating nature of the ratio in recent years may warrant further analysis to understand the underlying reasons for the changes and to ensure ongoing efficiency in the collection process.
Peer comparison
Dec 31, 2023