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', ERII's receivables turnover was 4.92, showing efficiency in collecting outstanding receivables. Industry average for Industrial Machinery/Components in '2021' stood at 4.54.
• In '2022', ERII's receivables turnover was 4.39, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2022' stood at 4.72. Industry average increased by 0.18 compared to previous year.
• In '2023', ERII's receivables turnover was 3.05, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at 4.78. Industry average increased by 0.06 compared to previous year.
• In '2024', ERII's receivables turnover was 2.51, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 4.64. Industry average declined by 0.14 from previous year.
Overall, ERII'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.