Williams Companies Inc (WMB)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,503,000 | 10,907,000 | 10,965,000 | 10,627,000 | 7,719,000 |
| Receivables | US$ in thousands | 1,863,000 | 1,655,000 | 2,723,000 | 1,978,000 | 999,000 |
| Receivables turnover | 5.64 | 6.59 | 4.03 | 5.37 | 7.73 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,503,000K ÷ $1,863,000K
= 5.64
Williams Companies Inc's receivables turnover has experienced fluctuations over the past five years. In December 2020, the receivables turnover stood at 7.73, indicating that the company was able to convert its accounts receivable into cash approximately 7.73 times during that year. However, this ratio decreased to 5.37 by December 2021, suggesting a slower rate of collection from customers.
The trend continued with a further decrease to 4.03 by December 2022, reflecting potential issues with collecting outstanding receivables efficiently. Subsequently, there was an improvement in receivables turnover to 6.59 by December 2023, indicating a better collection efficiency. However, the ratio decreased to 5.64 by December 2024, showing some inconsistency in managing accounts receivable turnover.
Overall, the downward trend in the receivables turnover ratio from 2020 to 2022 raises concerns about the company's credit policies, collection processes, or the quality of its customer base. The subsequent improvements in 2023 could signify efforts to address these issues, although the decline in 2024 suggests that further monitoring and optimization may be necessary to ensure efficient management of accounts receivable in the future.
Peer comparison
Dec 31, 2024