Companies most efficient in collecting their debt from customers – Which Ratio?
I have an exam where I analyze date from three anonymous companies.
The question states:
“The companies most efficient in collecting their debt from their customers would be:”
And they give you balance sheet figures with the addition of Net Income.
Currently, I’m thinking the ratio I need would be Revenue / Accounts Receivable.
Then the highest ratio would be the correct answer, as to which companies are most efficient in collecting their debt.
Any help would be appreciated,