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', LFMDP's receivables turnover was 94.77, showing efficiency in collecting outstanding receivables. Industry average for Medical/Nursing Services in '2021' stood at 6.36.
• In '2022', LFMDP's receivables turnover was 62.41, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 6.36. Industry average increased by 0.00 compared to previous year.
• In '2023', LFMDP's receivables turnover was 37.61, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at 6.51. Industry average increased by 0.15 compared to previous year.
• In '2024', LFMDP's receivables turnover was 31.49, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at 6.98. Industry average increased by 0.47 compared to previous year.
Overall, LFMDP'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.