finans.docx - ACTIVITY RATIOS RECEIVABLE TURNOVER = Annual...

ACTIVITY RATIOS
RECEIVABLE TURNOVER = Annual Net Credit Sales/Receivables
Turkish Airlines Pegasus
-2015 -2015
28752/8156=3,5 34882/5260=6,6
-2016 -2016
29468/6126=4,8 37074/3520=10,5
-2017 -2017
39779/5773=6,9 53485/3157=17
2015 2016 2017
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.12
0.05
0.15
0.1
0.03
0.09
Receivable Turnover
TURKISH AIRLINES PEGASUS
As we can see from the data and graph, we can say that pegasus has a high quality customer who is
quick to pay its debts and is very efficient. We can say that Pegasus has a conservative policy for
extending the loan. On the other hand, the pegasus’s policy may be too conservative if it is too tight
in extending credit, which can drive away potential customers and give business to competitors. In
this case, a company may want to loosen policies to improve business, even though it may reduce its
receivables turnover ratio.
In the other hand Turkish Airlines's may have poor collecting processes, a bad credit policy or none at
all, or bad customers or customers with financial difficulty. Theoretically, a low ratio can also often
mean that the company has a high amount of cash receivables for collection from its various debtors,
should it improve its collection processes.