#reading-38-working-capital-management
If the receivables turnover is significantly higher than the industry average, the number of days it takes the receivables to convert cash should be very low.
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Open it If the receivables turnover is significantly higher than the industry average, the number of days it takes the receivables to convert cash should be very low. This is an indication that the company's credit policy may be too strict and that sales are being lost to peers because of this. The average days of receivables are only one component o Summary
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