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 '2020', OGI's receivables turnover was 5.11, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Pharmaceutical Preparations in '2020' stood at 5.11.
• In '2021', OGI's receivables turnover was 4.14, showing efficiency in collecting outstanding receivables. The decline from '2020' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 2.42. Industry average declined by 2.69 from previous year.
• In '2022', OGI's receivables turnover was 4.31, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 2.48. Industry average increased by 0.06 compared to previous year.
• In '2024', OGI's receivables turnover was 4.30, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.61. Industry average increased by 0.13 compared to previous year.
Overall, OGI's receivables turnover has consistently declined during the past 4 years.

Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable

Good Range: Ranges 5 to 15 depending on credit terms.