Accounts Receivable TurnoverLiquidity Ratios
Accounts Receivable Turnover displays the amount of times a company’s accounts receivable is paid in full during the year. The equation is based on credit sales, which is not always displayed. If credit sales do appear, it may be in the footnotes, or within the discussion and analysis section of the financial statement. If the firm is credit sales reliant, the turnover period needs to be equal to, or less than, the credit terms.
If the Accounts Receivable turnover period is 140 days while credit periods are 31 days, there will be problems meeting short-term bills and liquidity will suffer. Always ensure that the account receivable turnover period is below the credit period in days. This way your firm should be able to meet its short-term obligations.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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