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', PBH's receivables turnover was 7.80, showing efficiency in collecting outstanding receivables. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 2.48.
• In '2023', PBH's receivables turnover was 7.36, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 2.34. Industry average declined by 0.14 from previous year.
• In '2024', PBH's receivables turnover was 6.55, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 2.61. Industry average increased by 0.27 compared to previous year.
• In '2025', PBH's receivables turnover was 6.13, showing efficiency in collecting outstanding receivables. The decline from '2024' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2025' stood at 6.13. Industry average increased by 3.52 compared to previous year.
Overall, PBH'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.