Essential Utilities Inc (WTRG)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,053,824	2,279,788	2,303,151	2,315,207	2,288,032	2,118,336	2,045,578	1,993,854	1,878,144	1,816,455	1,803,242	1,790,678	1,462,698	1,214,742	1,109,721	944,145	889,692	869,397	851,908	844,876
Receivables	US$ in thousands	245,736	208,836	225,679	331,216	376,828	202,446	222,779	287,127	260,921	171,689	193,063	253,164	273,313	189,773	213,737	263,551	107,620	116,979	110,741	96,410
Receivables turnover		8.36	10.92	10.21	6.99	6.07	10.46	9.18	6.94	7.20	10.58	9.34	7.07	5.35	6.40	5.19	3.58	8.27	7.43	7.69	8.76

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,053,824K ÷ $245,736K
= 8.36

The receivables turnover ratio for Essential Utilities Inc has shown variability over the past eight quarters. The Q4 2023 receivables turnover ratio decreased to 8.36 from the previous quarter's 10.92. This suggests that the company collected its accounts receivable less frequently in Q4 compared to Q3 2023.

Looking back at the comparison with Q4 2022, there has been an improvement in receivables turnover, as Q4 2023's ratio of 8.36 is higher than the Q4 2022 ratio of 6.07. This indicates that Essential Utilities Inc has become more efficient in collecting its accounts receivable over the past year.

The quarterly fluctuations in the receivables turnover ratio may be reflective of seasonal trends, changes in the company's credit policies, or shifts in customer payment behavior. Further analysis and comparison with industry benchmarks would provide more insights into Essential Utilities Inc's efficiency in managing its accounts receivable.