Receivables turnover ratio

Similarly good management practice is to hold accounts receivable at a low level and to have a high accounts-receivable-turnover ratio, as given by... 

An accounts-receivable-turnover ratio of 12 is considered fairly good for a manufacturing company This implies an average collection period of about 1 month. The price obtained for the goods should include an allowance for interest (otherwise obtainable) on the money tied up for such a period. 

Receivables turnover ratio = credit sales -f- average... 

As with the accounts receivable turnover ratio, accounts payable turnover can be stated in the number of days it takes to pay suppliers as follows ... 

Turnover ratios measure the efficiency with which an organization uses its assets. They are also referred to as efficiency ratios or asset utilization ratios. The two most commonly used turnover ratios are inventory turnover and receivables turnover. 

Receivables turnover A ratio that reflects a pharmacy s ability to collect its debt and extend credit to its customers. 

The efficiency ratio, also called the activity ratio, measures the speed at which a company moves its assets through operations. The efficiency and solvency ratios can be used together to effectively assess fhe firm s solvency position. Two of the most common activity ratios are the accounts receivable turnover and inventory turnover ratios. 

Days sales outstanding (DSO), also called average collection period, is another ratio that evaluates receivables. It represents the number of days it takes to collect cash from receivables. DSO can be more intuitive to understand than the A/R turnover ratio. 

In a prospective study designed to investigate the pharmacodynamic effects of Uthium treatment on GSK-3 activity in patients with mild Alzheimer s disease, 71 patients received either lithium or a placebo for 10 weeks. Patients where assessed for cerebrospinal fluid (CSF) phospho-tau levels and cognitive function was assessed by Alzheimer s disease assessment scale (ADAS-Cog). No effect of lithium on CSF phosphorylated tau levels could be shown. However, a clinically significant effect on cognition was measured by ADAS-Cog [101]. It is feasible that a 10-week lithium treatment might not be sufficient to see an effect on phosphorylated tau or that GSK-3 inhibition will not be reflected in the CSF phospho-tau or total tau levels. CSF turnover is quite rapid (about 6 h) and a more predictive readout might be the tau/beta amyloid ratio that has been shown to be more sensitive [ 102]. 

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