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', LGO's receivables turnover was 8.37, showing efficiency in collecting outstanding receivables. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2021' stood at 3.94.
• In '2022', LGO's receivables turnover was 10.27, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2022' stood at 4.94. Industry average increased by 1.00 compared to previous year.
• In '2023', LGO's receivables turnover was 8.53, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2023' stood at 5.17. Industry average increased by 0.23 compared to previous year.
• In '2024', LGO's receivables turnover was 7.07, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Mining & Quarrying of Nonmetallic Minerals (No Fuels) in '2024' stood at 6.18. Industry average increased by 1.01 compared to previous year.
Overall, LGO'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.