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', MUSA's receivables turnover was 88.71, showing efficiency in collecting outstanding receivables. Industry average for Retail-Auto Dealers and Gas Stations in '2021' stood at 2.45.
• In '2022', MUSA's receivables turnover was 98.22, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at 3.77. Industry average increased by 1.32 compared to previous year.
• In '2023', MUSA's receivables turnover was 69.63, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at 2.98. Industry average declined by 0.78 from previous year.
• In '2024', MUSA's receivables turnover was 66.90, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at 2.38. Industry average declined by 0.61 from previous year.
Overall, MUSA'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.