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Net Receivables

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Net Receivables
A measure of accounts receivable that a company expects to actually be paid. Accounts receivable is money that a customer owes a company for a good or service purchased on credit. One calculates net receivables by taking the accounts receivable and subtracting bad debt and expressing the result as a percentage of the total accounts receivable. For example, if a company's accounts receivable is $100,000 and it has $10,000 in bad debt, the net receivables is 90%.


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6pc of net receivables has been helped by the introduction of a new IT system to weed out high-risk borrowers.
One of the reasons for the sharp increase in profit this quarter was due to Infosys performing more of its projects offshore rather than onsite with the client, and CFO TV Mohandas Pai said: "We have pro-actively hedged our net receivables to mitigate the impact of the rupee appreciation on our margins.
Generally, A/R financing companies will lend an amount equal to 85% of the net receivables of nursing home operators, up to 180 days past due.
 
 
 
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