Receivables turnover ratio = Total sales / Net credit sales

Net credit sales = Sales on credit - Sales returns - Sales allowances

In those annual reports, there are no sales returns. Therefore, Net credit sales = Sales on credit - Sales allowances

Annual report 2018, p.2 and p.72:

• Net credit sales 2018 = Accounts receivable + Credit card receivables - Sales allowances

= 1198 + 3329 - 167

= 4360

In 2018, total sales are 45836$:

• Receivable turnover ratio (2018) = (45836 / 4360)

= 10.51

• Average collection period = 365 / 10.51 = 34.72 days

Annual report 2019, p.18 and p.70:

• Net credit sales 2019 = Accounts receivable + Credit card receivables - Sales allowances

= 1184 + 3624 - 196 = 4612

In 2019, total sales are 47099 $:

• Receivable turnover ratio (2019) = (47099 / 4612)

= 10,21

• Average collection period = 365 / 10.21 = 35.75 days

Annual report 2020, p.2 and p.69:

• Net credit sales 2020 = Accounts receivable + Credit card receivables - Sales allowances

= 3109 + 986 - 237 = 3858

In 2020, total sales are 51859$:

• Receivable turnover ratio (2020) = (51859 / 3858)

= 13.44

• Average collection period = 365 / 13.44 = 27.16 days

What do your results suggest about the company?