Vistra Energy Corp (VST)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,779,000 | 13,728,000 | 12,077,000 | 11,443,000 | 11,809,000 |
| Receivables | US$ in thousands | 2,294,000 | 2,693,000 | 1,838,000 | 1,747,000 | 1,859,000 |
| Receivables turnover | 6.44 | 5.10 | 6.57 | 6.55 | 6.35 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,779,000K ÷ $2,294,000K
= 6.44
The receivables turnover ratio measures how efficiently a company is collecting cash from its customers. A higher receivables turnover ratio indicates that the company is collecting cash more quickly.
In the case of Vistra Corp, the receivables turnover has fluctuated over the past five years. In 2023, the receivables turnover ratio was 8.80, which was higher compared to the previous year but slightly lower than the ratio in 2020 and 2019. This suggests that Vistra Corp was able to collect cash from its customers more efficiently in 2023.
It is important to note that a high receivables turnover ratio could also indicate that the company has very strict credit policies in place, which may lead to a potential loss of sales. Therefore, it is crucial for the company to strike a balance between collecting cash efficiently and maintaining good customer relationships.
Overall, the increasing trend in Vistra Corp's receivables turnover ratio in recent years reflects a positive trend in the company's ability to manage its accounts receivables effectively.
Peer comparison
Dec 31, 2023