Account Receivable / Payable Turnover Ratio
In order to check the financial stability, obtain credits, and invest in the growth of a Business, tracking and analyzing payment regularities both from customers and to vendors becomes mandatory.
Hence as an owner, your priority focus switches to analyzing payments that your customers make.
- How many days does the Company take to collect the outstanding debt throughout the accounting period?
- When will the Customer pay the remaining bill amount?
- Within how many days do you pay to which Vendor?
- Which company pays within how many days?
- Is your Business at present in Credit or in Debt based on Receivables and Payable?
- What are the Receivable Days within which you will receive payment from each Customer?
- What are the Payable Days within which you will pay each Vendor?
- Within how many days does the Company receives all the pending bill amount from customers?
- Which company is how much Regular in receiving its payment?
- Within how many days the Company pays the pending bill amount to vendors?
- Which Company is how much regular in paying its remaining amount to Vendors?
- Within how many days Company converts back its investments to cash again through sales?
- Smooth CashFlow
- Able to Forecast Budget
- Capable of implementing business growth strategies efficiently
- Identify ineffective billing Customers
- Segment Customers based on their Payment regularities
- Being capable of deciding Credit limits for Customers