Name: Receivables Turnover

Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.

Interpretation:
• In '2021', A's receivables turnover was 5.39, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Laboratory Analytical Instruments in '2021' stood at 4.73.
• In '2022', A's receivables turnover was 5.31, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2022' stood at 4.73. Industry average increased by 0.00 compared to previous year.
• In '2023', A's receivables turnover was 5.07, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2023' stood at 5.19. Industry average increased by 0.45 compared to previous year.
• In '2024', A's receivables turnover was 4.98, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Laboratory Analytical Instruments in '2024' stood at 5.00. Industry average declined by 0.19 from previous year.
Overall, A's receivables turnover has consistently declined during the past 4 years.

Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable

Good Range: Ranges 5 to 15 depending on credit terms.