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', LGCB's receivables turnover was 8.37, showing efficiency in collecting outstanding receivables. Industry average for Catalog/Specialty Distribution in '2021' stood at 5.70.
• In '2022', LGCB's receivables turnover was 9.62, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Catalog/Specialty Distribution in '2022' stood at 6.09. Industry average increased by 0.38 compared to previous year.
• In '2023', LGCB's receivables turnover was 4.85, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Catalog/Specialty Distribution in '2023' stood at 5.32. Industry average declined by 0.77 from previous year.
• In '2024', LGCB's receivables turnover was 2.14, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Catalog/Specialty Distribution in '2024' stood at 4.90. Industry average declined by 0.42 from previous year.
Overall, LGCB'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.