Essential Utilities Inc (WTRG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,053,820 | 2,288,030 | 1,878,140 | 1,462,700 | 889,692 |
| Receivables | US$ in thousands | 245,736 | 376,828 | 260,921 | 273,313 | 107,620 |
| Receivables turnover | 8.36 | 6.07 | 7.20 | 5.35 | 8.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,053,820K ÷ $245,736K
= 8.36
Essential Utilities Inc's receivables turnover has fluctuated over the past five years, ranging from 5.35 to 8.36. The average receivables turnover for the period is approximately 7.05. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. In 2023, the ratio improved significantly to 8.36, suggesting that Essential Utilities Inc was able to collect its receivables 8.36 times during the year. This may reflect more effective credit policies or better collection practices. Consistent monitoring and analysis of receivables turnover ratio can provide valuable insights into the company's liquidity, credit policies, and overall financial health.
Peer comparison
Dec 31, 2023