Plumas Bancorp(Plbc) 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 PLBC 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 '2021', PLBC's receivables turnover was 2.36, showing efficiency in collecting outstanding receivables. Industry average for Finance Companies in '2021' stood at 3.59.
• In '2022', PLBC's receivables turnover was 1.83, showing efficiency in collecting outstanding receivables. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance Companies in '2022' stood at -3.10. Industry average declined by 6.70 from previous year.
Overall, PLBC's receivables turnover has consistently declined during the past 2 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.