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', YAAS's receivables turnover was 0.98, showing efficiency in collecting outstanding receivables. Industry average for Computer Software: Prepackaged Software in '2021' stood at 4.60.
• In '2022', YAAS's receivables turnover was 1.75, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2022' stood at 4.60. Industry average declined by 0.00 from previous year.
• In '2023', YAAS's receivables turnover was 3.16, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2023' stood at 4.63. Industry average increased by 0.03 compared to previous year.
• In '2024', YAAS's receivables turnover was 2.54, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2024' stood at 4.59. Industry average declined by 0.04 from previous year.
Overall, YAAS's receivables turnover has been volatile but showed an upward 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.