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What is recievable turnover?
What Does Receivables Turnover Ratio Mean?An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.Investopedia explains Receivables Turnover RatioBy maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient.A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.From Riem Samnang
How do you calculate optimum level of current assets?
It depends on many factors. The demand for the product. when the demand for the product is established. then you make projections for sales. The Return on investment should be high. its a results of net profit/(current assets + fixed assets). The ROI will be high when the denominator is low. So when you keep current asset level low at the year end. the ROI will be high. You can keep the current assets level low only when your cash conversion cycle(CCC) is shorter. you can have shorter CCC. only when the Inventory turnover, and Recievables turnover are high and payables turn over is low (or) Inventory turnover, and Recievables turnover are low and payables turn over is high (if you have good credit terms with suppliers). Over the years it was a bone of contention for many finance manager on how to manage an optimum level.still a lot of work is going on to find out the optimum levels for current assets.
What is stock turnover ratio?
Also called the Inventory Turnover Ratio, this is a measure of the number of times inventory is sold or used in a time period corresponding to the average inventory held by the company. This ratio can help us determine how efficiently the company is using its inventory (raw materials) to generate revenue and income. i.e., how quickly is the company able to transform the inventory into finished goods that can be sold and generate an income.A high turnover rate means that the company is utilizing its available inventory effectively but a very high value may cause risks of inadequate inventory levels. Whereas, a low turnover rate means that the company is overstocking or there are deficiencies in the production strategies.Formula:STR or ITR = Total cost of goods sold / Average Inventory
Why is it advantageous to have a high inventory turnover?
can sell at lower prices and still make good profit
What is the negative impact on good inventory turnover ratio?
An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.
Why should a firm be concerned if its accounts receivable turnover ratio in unusually high compared to the industry norm?
By maintaining accounts receivable, companies are indirectly extending interest-free loans to their customers. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient. To put it in simple terms, the higher the turnover ratio, the faster a business is collecting its receivables and the more cash the company generally has on hand. Generally, this means it's good. However an unsually high turnover compared to the industry norm could mean that your credit terms are tighter than your competitors' (e.g. you could be giving 30 days' credit while your competitors give 60 days) and you run the risk of losing customers to them. In addition it could also signal excessive time spent in monitoring AR and making collection efforts.
What company is facing problems with high turnover?
Sprint/Nextel is facing problems with high turnover
What is it called when prisons have high turnover rates?
High turnover rates in prisons are commonly referred to as "staff turnover" or "correctional officer turnover." This can have negative effects on the overall functioning and security of the prison.
What does having a high credit score mean?
A high credit score means that you have great credit. A high credit score of over seven hundred can help you get a better interest rate on a loans like mortgages.
What causes high staff turnover?
High staff turnover refers to how often staff is changed over in a business and it can be caused by dissatisfied employees. One way high turnover hurts a business is by costing the company money to find and train replacements for employees that leave.
What does a high fico score mean?
A high fico score means you could have anywhere from a good credit rating to an excellent credit rating. If you have a high fico score, it means you pay your bills on time with no late or missing payments.
What is the turnover rate in the dental hygienist field?
high
What does HC mean on a credit report?
HC on a credit report means High Credit. This is the highest amount of money a creditor has issued to you in the past.
What is recievable turnover?
What Does Receivables Turnover Ratio Mean?An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.Investopedia explains Receivables Turnover RatioBy maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient.A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.From Riem Samnang
Can you get get a credit card without a money income?
No. No money means you can not pay for it . A credit card is a loan from a bank with a high interest rate.
What is a high credit score rating?
A high credit score rating means someone is in good standing credit wise. They are prompt in payments and always pay payments in full. A good credit score is sought after by many people, because its a mark of a responsible person.
How high credit cards affect your credit score?
High Credit card balance affect your credit score negatively. See, the debt to credit ratio makes up 10% of your credit score. This means the amount of money you owe on a credit line. The more you owe, the worse it hurts your credit (maxed out cards do the most damage). It is recommended to try to be below 30% of your line of credit.
