C was the condition attribute in each enterprise; [C.sub.1] was gross profit rate; [C.sub.2] was times interest earned; [C.sub.3] was monthly sales volume; [C.sub.4] was the quantity of monthly orders; C was consumer evaluation index; [C.sub.6] was average collection period
; [C.sub.7] was the registered fixed number of years; [C.sub.8] was tourists' conversion rate; [C.sub.9] was tourists' collecting rate; [C.sub.10] was monthly store views; D was decision attribute.
Average SD Firm value 0.251 4.328 1.996 0.276 Debt financing 10542 6253379 2005417 154.236 Stock issue financing 426327 55102447 26340921 1063.314 Retained earnings financing 26541 922635 418627 102.155 Average collection period
5 107 49.6 0.227 Average turnover in days 3 86 42.7 0.406 Average debt payment period 7 99 53.2 0.581 Cash conversion cycle 9 120 76.3 0.421 Firm size 11.415 39.623 21.547 4.269 Book value of equity to 0.102 4.263 1.745 0.448 sale ratio Operating profit to sale 0.073 0.586 0.196 0.672 Financial leverage 0.082 0.926 0.576 0.326 Determination of model estimation method- Significance test of fixed effects method:
The average collection period
or receivables collection period correspond to the average time in days for which business has to wait before its receivables are converted into cash.
The cash conversion cycle is equal to the inventory conversion period (days of inventory) plus the average collection period
(ACP) or (DSO) less payables deferral period.
A similar non-linear relationship to sales growth is also found with average collection period
(DSO) and average days' credit (DPO).
Start with debt/equity, average collection period
, quick ratio, and current ratio.
When the collections division was established in 1984, invoices more than 120 days past due totaled $567,000, the average collection period
was 67 days, and only 32 percent of invoices were collected within 30 days.
Besides keeping track of which customers are behind and by how much, you should be aware of your average collection period
- accounts receivable divided by sales per day.
Also, the average collection period
would be shortened to twenty-eight days, and the bad debt experience would drop from 3.5% of sales to 3.0%.
The rating reflect the continuous drop of the company's revenues, its highly leveraged capital structure, medium scale of operations, working capital intensive nature of operations and high average collection period
The ratings also factor in the relatively small size of operations (although increased over the last two years), high average collection period
and risk associated with implementation of the on-going project.
Selling terms are net 30 and average collection period
or days sales outstanding is 39 days, below the industry average of 43 days.