It is better to plan for these expenses in advance so as not to take them from working capital. Calculate the turnover ratio. This is an indicator that allows you to understand how effectively a business manages the receipt of receivables for a certain period. The coefficient can be calculated, for example, for a year or a quarter.
Depending on the industry and the specifics of the company's work, the result may be different - there are no generally accepted values. Turnover is calculated using the formula: Revenue for the billing turkey telegram mobile phone number list period ÷ Average balance of accounts receivable The higher the turnover ratio, the more effectively the organization has organized the process of receiving payments from counterparties.
can be collected. For example, if the ratio has decreased compared to previous reporting periods, debtors may be late with payments or bad debt has appeared. Calculate the debt repayment period. The efficiency of working with debtors can be determined by the speed with which the organization receives payments. This indicator has a formula: Period in days × (Debt size ÷ Company revenue) The result is the number of days it takes debtors to pay off their debts on average.