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', PHH's receivables turnover was 11.68, showing efficiency in collecting outstanding receivables. Industry average for Package Goods/Cosmetics in '2021' stood at 6.32.
• In '2022', PHH's receivables turnover was 2.39, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2022' stood at 5.70. Industry average declined by 0.62 from previous year.
• In '2023', PHH's receivables turnover was 2.20, showing efficiency in collecting outstanding receivables. The decline from '2022' may indicate some operational or financial challenges. Industry average for Package Goods/Cosmetics in '2023' stood at 4.91. Industry average declined by 0.79 from previous year.
• In '2024', PHH's receivables turnover was 2.62, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Package Goods/Cosmetics in '2024' stood at 5.49. Industry average increased by 0.58 compared to previous year.
Overall, PHH'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.