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
Additionally, the increase in the accounts receivable turnover
is a positive sign implying lower accrual based sales.
Finally, long payment terms slow accounts receivable turnover
, reducing asset turnover.
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.
However, there are a number of meaningful measures that are readily understood and should be used as a basis for disclosure, such as inventory and accounts receivable turnover
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.
More than 61% of businesses surveyed said their top priority is to expedite accounts receivable turnover
to accelerate cash flow.
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
The Receivables Exchange's Charter Member program has surpassed more than $2 billion in accounts receivable turnover
since commencing its sales initiatives six months ago.