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', AFL's receivables turnover was 32.06, showing efficiency in collecting outstanding receivables. Industry average for Accident &Health Insurance in '2021' stood at 3.23.
• In '2022', AFL's receivables turnover was 29.04, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Accident &Health Insurance in '2022' stood at 1.01. Industry average declined by 2.22 from previous year.
• In '2023', AFL's receivables turnover was 25.21, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Accident &Health Insurance in '2023' stood at 0.83. Industry average declined by 0.18 from previous year.
• In '2024', AFL's receivables turnover was 23.51, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Accident &Health Insurance in '2024' stood at 0.95. Industry average increased by 0.12 compared to previous year.
Overall, AFL'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.