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', MRCC's receivables turnover was 4.24, showing efficiency in collecting outstanding receivables. Industry average for Investment Managers in '2021' stood at 3.94.
• In '2022', MRCC's receivables turnover was 0.35, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Investment Managers in '2022' stood at -0.14. Industry average declined by 4.08 from previous year.
• In '2023', MRCC's receivables turnover was 0.31, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Investment Managers in '2023' stood at 2.48. Industry average increased by 2.62 compared to previous year.
• In '2024', MRCC's receivables turnover was 0.68, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Investment Managers in '2024' stood at 4.54. Industry average increased by 2.06 compared to previous year.
Overall, MRCC'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.