Companies most efficient in collecting their debt from customers – Which Ratio?

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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,
Thanks.

1 Comment
  1. Reply
    Sandy
    November 10, 2011 at 3:14 am

    The highest receivables turnover;or the lowest no. of days sales outstanding. But be careful. You can only compare the 3 companies if they’re in the same industry. You can’t compare a Rolls Royce car dealership with a supermarket. The latter sells eggs and milk and the goods sell in a day cos they’re perishable. I doubt if the dealership sells even one Rolls Royce in a month.
    http://www.cliffsnotes.com/study_guide/Ratio-Analysis.topicArticleId-21248,articleId-21213.html

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