Emera Common Shares(Ema) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for EMA compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', EMA's receivables turnover was 5.38, showing efficiency in collecting outstanding receivables. Industry average for Electric Utilities: Central in '2021' stood at 5.30.
• In '2022', EMA's receivables turnover was 5.53, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 5.69. Industry average increased by 0.39 compared to previous year.
• In '2023', EMA's receivables turnover was 5.33, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2023' stood at 5.07. Industry average declined by 0.62 from previous year.
• In '2024', EMA's receivables turnover was 6.13, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2024' stood at 5.66. Industry average increased by 0.59 compared to previous year.
Overall, EMA's receivables turnover has steadily improved over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.