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A high average collection period indicates that a firm is having trouble collecting its outstanding credit, thereby transferring it to their accounts receivables. It could be because of policy - maybe no fees, or the management in charge of collection is not doing their job.
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How does Inventory contribute to company Profit?
Inventory is a balance sheet item. Costs added to inventory stay in inventory until the items are sold. There are many different ways to allocate these costs, at the discretion of the company. When items are sold, an allocation representing these items is moved from inventory to cost of sales (a.k.a. costs of goods sold) which becomes a cost for the period, match against an allocation of revenues for the period, which gives a figure for gross profit. Watch for trends in inventory from period to period, allowing for seasonality, and the gross margin (gross profit as a percent of revenues). The biggest thing to watch for is an unwarranted increase in inventory, which could indicate obsolescence, poor planning, or high returns. If inventories are too high, they are likely eventually to be written off.
What is the average 10 key strokes per hour?
The average 10 keystroke per hour is 8,000. Anything over 8,000 is considered good and 10,000 KPH is usually considered high speed.
What is the average grocery bill for family of 4 in California?
I have heard from a low of $200 to a high of $600. That includes laundry detergent, bags, etc. All things bought at a supermarket. The reason I know this is that I am doing research to show my wife that our 2008 monthly average of $1,416 is way high. She shops exclusively at natural foods stores. It's killing me!
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 companies have cash flow problems?
1) Overtrading. 2) Poor debtor collection policy and or relaxed debtor screening process. (Bulk of sales are on credit) 3) Purchase of Investment/ Fixed assets during the financial year. 4) Redemption of debt funds, e.g. Debentures and bank loan. 5) Redemption of Equity funds, e.g. Preference share capital. 6) large financial burden ( the need to service high interest) 7) Credit period not made use of. (Repay creditors too quickly / Cash purchases instead of Credit purchases) 8) Prepayments during the year.
If the average daily sales is high is the collection period high or low?
low
What does high pressure indicate about the approaching weather?
It usually means a period of calm sunny weather. Sometimes, it may be calm with a cloud cover.
Are high triglyceride levels cause for concern?
High triglyceride levels are one sign of the metabolic syndrome, a collection of health risks that indicate a very high risk of heart disease and can also irritate the pancreas and can cause pancreatitis. It is important to be tested for diabetes and high bloodpressure.
What group's collection of albums over a 40 year period has been remastered as two high-grade vinyl box sets?
the beatles
What does high wbc with high platelets and high neutrophils indicate?
This could indicate several things, from infection to leukemia. You should see a doctor to have more tests done.
How high was the sea level in the Jurassic Period?
On average, it ws about 100m above current levels. See the related link.
What does a high superheat indicate?
under charge
What has the author Phyllis Van Orden written?
Phyllis Van Orden has written: 'The collection program in high schools' -- subject(s): Collection development, High school libraries 'The collection program in schools' -- subject(s): Collection development, School libraries
Does a high degree of dispersion within an area indicate high density?
True
Which is higher above average or high average?
high average
What is supposed to indicate high social rank?
Wealth
High pH levels indicate what?
A basic solution.
