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', GLRE's receivables turnover was 1.37, showing efficiency in collecting outstanding receivables. Industry average for Property-Casualty Insurers in '2021' stood at 1.98.
• In '2022', GLRE's receivables turnover was 1.02, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Property-Casualty Insurers in '2022' stood at 1.83. Industry average declined by 0.15 from previous year.
• In '2023', GLRE's receivables turnover was 1.09, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2023' stood at 1.97. Industry average increased by 0.14 compared to previous year.
• In '2024', GLRE's receivables turnover was 0.90, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Property-Casualty Insurers in '2024' stood at 2.02. Industry average increased by 0.05 compared to previous year.
Overall, GLRE'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.