Analyzing the Receivable Balance of companies is one of the most prominent task for any Analysts
Even the Management of companies keep a close eye on Receivable Balances
The most preferred way to analyse the receivable balance is by calculating the receivable turnover ratio.
This ratio generally indicates the efficiency with which the company is able to manage its Receivable Balance.
It is calculated by taking Total Credit Sales in the numerator and Receivable Balance or Avg Receivable Balance in the denominator.
The ratio has been explained in Greater depth in our resource section.
This template can be used to calculate the Receivable turnover ratio of any company using MS Excel.
Financials of Walmart Inc has been used to illustrate the calculations. Just plug the Financials of any company and calculate the Ratio easily
Few highlights of this template are mentioned below.
- You can easily add financials of any other company and calculate the the ratio.
- Separate worksheet for Calculation, Income Statement and Balance Sheet.
- The Balance Sheet, Income Statement and the calculations are interlinked.