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Unformatted text preview: asset. It is an important indicator of a company's financial and operational performance. A high accounts receivable turnover indicates an efficient business operation or tight credit policies or a cash basis for the regular operation. Also, there is an opportunity cost of holding receivables for a longer period of time. Company should re-evaluate its credit policies to ensure timely receivable collections from its customers. measuring how efficiently a firm uses its assets....
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This note was uploaded on 11/24/2011 for the course FINANCE 340 taught by Professor White during the Fall '11 term at Maryland.
- Fall '11