Question
Can someone help me figure out how the company's investment in accounts receivable is decreasing? I don't understand how it could be decreasing. Year 3
Can someone help me figure out how the company's investment in accounts receivable is decreasing? I don't understand how it could be decreasing.
Year 3 Year 2 Year 1
Sales trend percents 137.0% 125.0% 100.0%
Selling expenses to sales 9.8% 13.7% 15.3%
Sales to plant assets ratio 3.5 to 1 3.3 to 1 3.0 to 1
Current ratio 2.6 to 1 2.4 to 1 2.1 to 1
Acid-test ratio 0.8 to 1 1.1 to 1 1.2 to 1
Merchandise inventory turnover 7.5 times 8.7 times 9.9 times
Accounts receivable turnover 6.7 times 7.4 times 8.2 times
Total asset turnover 2.6 times 2.6 times 3.0 times
Return on total assets 8.80% 9.40% 11.10%
Return on equity 9.75% 11.50% 12.25%
Profit margin ratio 3.3% 3.5% 3.7%
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