Accounts receivable turnover ratio: Assets are an integral part of any business and they help the business to perform its day to day operations smoothly. Analysts often measure the asset management capability of business and the most commonly used asset management ratio is accounts receivable turnover ratio. This ratio is used to measure how many time the trade receivables are turned over in a period. The higher the ratio it is better because the company is able to turn majority of its inventory into cash. Calculate accounts receivable turnover ratio of Whirlpool for 2015 and 2016. Determine the efficiency of Whirlpool with their receivables if the industry average is 6.14.
Accounts receivable turnover ratio: Assets are an integral part of any business and they help the business to perform its day to day operations smoothly. Analysts often measure the asset management capability of business and the most commonly used asset management ratio is accounts receivable turnover ratio. This ratio is used to measure how many time the trade receivables are turned over in a period. The higher the ratio it is better because the company is able to turn majority of its inventory into cash. Calculate accounts receivable turnover ratio of Whirlpool for 2015 and 2016. Determine the efficiency of Whirlpool with their receivables if the industry average is 6.14.
Solution Summary: The author calculates the accounts receivable turnover ratio of Whirlpool for 2015 and 2016 using the Sec.gov website.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 5, Problem 95.4C
To determine
Concept introduction:
Accounts receivable turnover ratio:
Assets are an integral part of any business and they help the business to perform its day to day operations smoothly. Analysts often measure the asset management capability of business and the most commonly used asset management ratio is accounts receivable turnover ratio. This ratio is used to measure how many time the trade receivables are turned over in a period. The higher the ratio it is better because the company is able to turn majority of its inventory into cash.
Calculate accounts receivable turnover ratio of Whirlpool for 2015 and 2016. Determine the efficiency of Whirlpool with their receivables if the industry average is 6.14.