Net Power(Npwr) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for NPWR compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2022', NPWR's receivables turnover was 3.22, showing efficiency in collecting outstanding receivables. Industry average for Industrial Machinery/Components in '2022' stood at 4.72.
• In '2024', NPWR's receivables turnover was 0.09, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 4.64. Industry average declined by 0.08 from previous year.
Overall, NPWR's receivables turnover has been volatile but showed a downward trend over the past 2 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.