As a result, we calculate trade receivable turnover
based on average balance of trade receivables, and not based on the year end balance of trade receivables as in the Article.
The accounts receivable turnover
is artificially inflated.
The company's consultant brought in Amerisource to boost cash flow, billing, credit management and accounts receivable turnover
Although the accounting changes had the least impact on the receivable turnover
and the average collection period, these ratios showed improvements.
Finally, long payment terms slow accounts receivable turnover
, reducing asset turnover.
These might include activity ratios like receivable turnover
, inventory turnover, days sales outstanding (DSO), gross margins, income from operations as a percent of sales or net income as a percent of sales.
Annual sales volume, average invoice size, longevity of factor-company relationship, accounts receivable turnover
, historical dilution rate, and concentration all impact the terms of factoring.
Parent and subsidiary firms did not significantly differ in their accounts receivable turnover
ratios (total sales over total accounts receivable) except for those in vertical keiretsu.
A turndown in accounts receivable turnover
rates suggests customers are finding it difficult to pay bills and signal the beginning of a decline.
We made significant improvements in rightsizing our balance sheet during the quarter, by reducing our inventory tons by 32%, maintaining a strong receivable turnover
, and eliminating 64% or $57 million of our debt.
Those who may be interested in the new product could include customers in the consumer goods sectors who wish to effectively minimize or even eliminate bad debt losses, outsource back office accounts receivable management, improve accounts receivable turnover
and increase access to working capital, he added.
00 Schedule Three Cape Chemical Statements of Cash Flow (000's/$) 2006 2007 Cash flow from operations Net Income 215 554 Plus depreciation expense 491 Change in accounts receivables Change in inventory Change in other current assets Change in account payables Change in accrued liabilities (1,513) Total cash flow from operations Cash flow from investing activities Change in land Change in fixed assets (522) Total cash flow from investing activities Cash flow from financing activities Change in short-term notes payables Change in long-term liabilities Change in common stock Dividends paid Total cash flow from financing activities Net cash flow (5) (10) Plus beginning cash 25 Ending cash 20 Schedule Four Cape Chemical Ratios 2005 2006 2007 Current Ratio Accounts Receivable Turnover