Fosters Group Limited and Heineken N.V. are two well-known beer companies. Fosters is an Australian company, and Heineken is Dutch. Fosters is about half the size of Heineken.
Ratios can help in comparing and understanding companies that are different in size and that use different currencies. For example, the receivable turnovers for Fosters and Heineken in 2005 and 2004 were as follows:

What do the ratios tell you about the credit policies of the two companies? How long does it take each, on average, to collect a receivable? What do the ratios tell you about the companies' relative needs for capital to finance receivables? Which company is improving? Can you tell which company has a better credit policy? Explain your answers.

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2005 2004 Fosters 5.6 times 3.2 times Heineken 7.3 times 6.6 times