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', EAD's receivables turnover was 12.47, showing efficiency in collecting outstanding receivables. Industry average for Finance/Investors Services in '2021' stood at 3.76.
• In '2022', EAD's receivables turnover was -2.22, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance/Investors Services in '2022' stood at -2.23. Industry average declined by 5.99 from previous year.
• In '2023', EAD's receivables turnover was -0.59, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Finance/Investors Services in '2023' stood at 1.22. Industry average increased by 3.45 compared to previous year.
• In '2024', EAD's receivables turnover was 2.76, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Finance/Investors Services in '2024' stood at 4.03. Industry average increased by 2.81 compared to previous year.
Overall, EAD's receivables turnover has been volatile but showed a downward trend over the past 4 years.

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

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