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Accounts Receivable Analysis

Accounts receivable are monies owed to your business for goods or services delivered to a customer, but not yet received. Successful companies collect money that is owed to them in a timely and efficient manner. Having too much money tied up in receivables means you are not getting the cash to pay for the goods or services you have provided. Not extending credit may impact sales. The 'Receivables Turnover Ratio' measures a businesses effectiveness in extending credit and collecting the debt. The higher the ratio, the more efficient the business is in dealing with its receivables. The accounts receivable to sales ratio looks at the amount you have tied up in receivables in comparison to your same period sales. The Average Collection Period shows how long, on average, it takes for you to collect your debts.

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The calculations provided by this calculator are based entirely on the information you enter, including any loan amount and/or interest rate. These calculations do not reflect the terms available for any ANB Bank loans or whether you qualify for any ANB Bank loan.