ratios

Essay specific features

 

Issue:

Business

 

Written by:

Ivan H

 

Date added:

August 5, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1434

 

Was viewed:

6649 times

 

Rating of current essay:

 
Essay content:

Receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. Formula: Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients...
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A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit not earning interest for the firm...
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