Receivables Balance Fraction

Receivables Balance Fraction

The percentage of a company's total sales that consist of accounts receivable at the end of a period, especially a month. In other words, the receivables balance fraction represents the sales on which the company has not collected. The figure can be valuable in determining a company's cash flow and credit risk.
References in periodicals archive ?
The survey asked the respondents what type(s) of forecasting techniques they used - the percent of sales method, the receivables balance fraction method, linear regression, an internally developed model, commercial software or another method - to forecast their receivables.