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![]() ![]() And Rich Hill is 40, coming back from offseason elbow surgery. With so little time, many teams are openly talking about starting the season with a six-man rotation, and the Twins may join them. “We’ve certainly kicked it around,” President of Baseball Operations Derek Falvey said. “It’s going to be important for us to monitor - how does Jose feel as he’s building up? Do we need to manage him in the early going? Same with Jake, same with Kenta, same with everybody.”įrom a preparation standpoint, this is the biggest difference between spring training and summer camp: exhibition games. In Florida, the Twins play 35 games each spring, giving players plenty of time to recapture their timing and internalize the daily rhythm of the game. What is the Accounts Receivable Turnover Ratio?ĭefinition: The accounts receivable turnover ratio is an accounting measure that quantifies how effective a company is, at collecting receivables from clients.īut teams will be allowed to schedule only three preseason games this month, right before Opening Day. This ratio tells stakeholders how quickly a business can convert credit extended to customers into cash. Also known as debtor’s turnover ratio, the accounting metric displays the businesses’ efficiency when it comes to using assets. Important to note, businesses use the net credit sales to compute the receivable turnover ratio. If the gross credit sales are used, the business is likely to come up with a wrong result. This is because unadjusted total credit sales lead to inflated readings. Typically, the receivable turnover ratio enables businesses to keep track of their performance over the years. ![]() Also, this ratio informs a business of where it stands relative to competitors in the industry.Īccounts Receivable Turnover Ratio Formula For example, the ratio for the just ended financial year may be compared to the previous year to gauge where the business stands in terms of revenue collection efficiency. The two main components used in computing accounts receivable ratio are net credit sales for the period in consideration. If the period under consideration is one financial year, then the accountant will put together the net sales for which the customers have not paid in yet during that year. To this end, one computes the sum of the beginning accounts receivable and the ending accounts receivable and then divide by two.Īccounts Receivable Turnover Ratio Example On the other hand, there is the average of accounts receivable for the period in consideration. Let us see how this formula works in an example. John, a junior accountant at a food company, has been requested by his seniors to compute the accounts receivable turnover ratio for year just ended. ![]() In addition, John is supposed to submit his assessment of the company’s efficiency in terms of revenue collection during this period in comparison to the past year. In the opening balance sheet for the year just ended, the company’s accounts receivable balance $55,345. ![]()
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